Excelsior Correspondent
JAMMU, June 7: Vehicle retail sales in Jammu and Kashmir witnessed a significant drop in May 2025, mainly due to ongoing geopolitical tensions in sensitive border areas.
As per data shared by the Federation of Automobile Dealers Associations (FADA), most vehicle categories showed a decline.
The data claimed the sales of commercial vehicles were hit the hardest, falling by 30.09% to 711 units, down from 1,017 units in May 2024.
“Construction equipment (CE) sales dropped by 48.33%, while passenger vehicles saw a 10.83% dip to 3,863 units from 4,332 units last year,” it said.
Three-wheeler sales also declined by 9.07%, and tractors registered a drop of 15.64%, the data further claimed.
However, it said, two-wheeler sales showed resilience, growing by 10.72% to 8,509 units compared to 7,685 units in May 2024.
FADA Jammu Chairperson Sanjay Aggarwal said the dip was largely due to regional instability, which affected buyer sentiment and daily operations of dealerships.
“Consumers are hesitant to invest, especially in higher-end passenger vehicles, fearing mobility disruptions and safety concerns,” he said.
Dealers also reported fewer walk-ins, shorter operating hours, and delayed deliveries due to security checks and logistical issues. The commercial vehicle segment took a further hit due to movement restrictions and a drop in tourism-related transport demand.
Aggarwal added that the current environment has led to a “wait-and-watch” approach among consumers and commercial buyers alike.
He said that while the long-term outlook remains cautiously optimistic, any recovery would depend on the restoration of regional stability.
Dealers and vehicle manufacturers may need to adopt flexible, hyper-local strategies like tailored financing and digital outreach to revive consumer interest.
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