Automobile retail sales in India went up by around 5 per cent year-on-year in June with all vehicle segments registering growth, including passenger vehicles and two-wheelers. The Federation of Automotive Dealers Associations (FADA) said on Monday that overall automobile registrations last month stood at 20,03,873 units, an appreciation of 4.84 per cent as compared to 19,11,354 units in June 2024.
Passenger vehicle (PV) retail sales rose 2 per cent year-on-year to 2,97,722 units last month, as against 2,90,593 units in the corresponding period last year. “Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support,” FADA President C S Vigneshwar said in a statement.
Some dealers indicated that certain PV original equipment manufacturers (OEMs) have introduced compulsory billing procedures such as automatic wholesale debits, to meet volume targets. The inventory thus stands at around 55 days. Vigneshwar said that June thus painted a picture of modest but steadfast passenger vehicle performance amid varied market cues.
Two-wheeler retails, on the other hand, rose 5 per cent year-on-year to 14,46,387 units in June. “While the demand in the festival and wedding season provided a boost, financing constraints and intermittent variant shortages moderated sales,” said the FADA president. 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, he said.
Commercial vehicle registrations went up 7 per cent to 73,367 units in June. Vigneshwar said the sales last month reflected a resilient CV segment adeptly navigating cost pressures and a softening economy. "Early-month deliveries buoyed volumes before monsoon-induced slowdowns and constrained liquidity dampened enquiries and conversions.”
FADA members also spoke about the impact of new CV taxation and mandatory air-conditioned cabins, which have hiked ownership costs in the midst of muted infrastructure demand.
Three-wheeler retails increased 7 per cent to 1,00,625 units, while tractor registrations rose 9 per cent to 77,214 units last month. In the April-June period, overall retail sales increased 5 per cent year-on-year to 65,42,586 units as compared to 62,39,877 units in same period in the previous fiscal year.
PV sales rose 3 per cent year-on-year to 9,71,477 units. Similarly, two-wheeler registrations increased 5 per cent year-on-year to 47,99,948 units. CV and three-wheeler retail sales rose 1 per cent and 12 per cent, respectively, in the April-June period. Tractor registrations, on the other hand, rose 6 per cent year-on-year to 2,10,174 units in the first quarter.
Speaking about the business outlook in the near term, FADA said that above-normal monsoon forecast in July, along with regional variances, should bolster rural demand even as heavy-to-very-heavy precipitation zones introduce logistical complexities. Early kharif sowing, up 11 per cent year-on-year to 262.15 lakh hectares, underlines stronger farm incomes and augurs well for two-wheeler uptake in the hinterlands, said the FADA.
However, the association added a word of caution, saying that the evolving geopolitical tensions and potential spill-over from US tariff measures warrant vigilant supply chain management and could temper consumer sentiment. Besides, challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes.
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