Automobile Retail Sales Grow 4.84% In June 2025: FADA
Two-wheeler retails dipped 12.48% month-on-month but still notched a 4.73% gain on a year-on-year basis, as per FADA.
Overall automobile retail sales in India grew 4.84% year-on-year in June this year to 20,03,873 units, driven by festival and marriage-season demand, Federation of Automotive Dealers Associations said on Monday.
"Segment-wise, every category closed in the green with two-wheeler at 4.73%, three-wheeler at 6.68%, passenger vehicle at 2.45%, tractors at 8.68%, construction equipment at 54.95% and commercial vehicles at 6.6%," said FADA President C S Vigneshwar.
Two-wheeler retails dipped 12.48% month-on-month but still notched a 4.73% gain on a year-on-year basis, as per FADA. "While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns," he said.
"Several dealers cited compulsory billing and forced stock lifts-often via auto-debit wholesales-leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals," said Vigneshwar.
Passenger vehicle retails slipped 1.49% month-on-month yet delivered a 2.45% year-on-year uplift. "Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support. Some dealers indicated that certain PV OEMs have introduced compulsory billing procedures-such as automatic wholesale debits-to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues," said Vigneshwar.
CV retails declined 2.97% month-on-month while achieving a robust 6.6% year-on-year expansion. Vigneshwar noted early-month deliveries buoyed volumes before monsoon-induced slowdowns and constrained liquidity dampened enquiries and conversions.
"Members pointed to the impact of new CV taxation and mandatory air-conditioned cabins, which have elevated ownership costs, alongside muted infrastructure demand. Overall, June reflected a resilient CV segment adeptly navigating cost pressures and a softening economy," he further added.
FADA highlighted in its near-term outlook that, July is likely to witness mixed fortunes driven by agrarian tailwinds and school reopenings, yet tempered by seasonal headwinds, elevated price points and liquidity constraints.
"Dealer sentiment appears tilted towards slowdown-flat and de-growth expectations (42.8% and 26.1%) exceed growth forecasts (31.1%). Similarly, booking-pipeline traction remains uneven-only 21% of 2W, 38% of PV and 32% of CV dealers report healthy enquiry flows," it added.
It noted that in the 2W arena, early monsoon showers and renewed rural activity have spurred interest, yet heavy rainfall, variant shortages and price increases effective July are moderating conversions.
PV faces high-base effects, limited new-model launches and tight financing, offset in part by festival planning and fresh incentive schemes. CV continues to grapple with muted infrastructure demand, higher ownership costs from new taxation and mandatory AC-cabin norms, even as extended order pipelines provide some relief.
FADA adopts a stance of cautious optimism-leveraging rural demand drivers and government capex while remaining agile to navigate monsoon-related disruptions, supply constraints and liquidity pressures.
