Early Times Report
JAMMU, June 7: In J&K the 3-Wheeler category witnessed a downfall of -9.07% at 952 units in May 2025, as compared to 1,047 units in May 2024. The Commercial Vehicle category witnessed a downfall of -30.09% at 711 units in May 2025, as compared to 1,017 units in May 2024. The CE category witnessed a downfall of -48.33% at 31 units in May 2025, as compared to 60 units in May 2024.The Passenger Vehicle category witnessed a downfall of -10.83% at 3,863 units in May 2025, as compared to 4,332 units in May 2024. The Tractor Vehicle category witnessed a downfall of -15.64% at 302 units in May 2025, as compared to 358 units in May 2024. In May 2025, only the 2-Wheeler category witnessed a growth of 10.72% at 8,509 units in May 2025, as compared to 7,685 units in May 2024
Sanjay Aggarwal, Chairperson FADA Jammu said that, Geopolitical tensions in various parts of Jammu & Kashmir, particularly in sensitive border regions, have had a significant dampening effect on overall vehicle retail performance in May 2025.
Aggarwal said that, in the passenger vehicle segment, consumer sentiment has weakened notably as potential buyers adopt a cautious stance amid concerns over mobility, safety, and regional stability. Many customers have deferred purchase decisions, especially in higher-end vehicle categories, due to fears of escalation or disruption.
Aggarwal said that, dealerships have reported reduced footfall, shorter business hours, and delays in test drives and deliveries caused by security checkpoints and logistical hurdles. The commercial vehicle segment has also felt the impact, as logistics operations and freight routes through sensitive areas face movement restrictions. Also due to the negative impact on tourism in J&K, the sales of vehicles for fleet operations also got badly affected.
Overall, the prevailing tension has contributed to a broader climate of uncertainty, reinforcing a "wait-and-watch" approach among both retail consumers and commercial buyers in the region he added.
Aggarwal said that, looking ahead, the outlook for the vehicle retail market in Jammu & Kashmir remains cautiously optimistic but highly contingent on regional stability and broader economic factors. If geopolitical tensions ease in the coming months, there could be a gradual rebound in consumer confidence, particularly in the passenger and commercial vehicle segments.
However, any escalation in regional tensions or disruption in essential logistics routes could further delay recovery. Dealers and OEMs may need to adopt hyper-local strategies, including flexible financing, community engagement, and digital outreach, to rebuild trust and stimulate demand he added. |
