India's automobile retail market posted its strongest June performance on record, with total vehicle sales reaching 25,57,234 units last month, according to data released by the Federation of Automobile Dealers Associations (FADA) on Monday. The industry recorded a 21.83 per cent year-on-year increase, while sales were also 1.03 per cent higher than in May.
Passenger vehicles (PV) led the growth momentum, with retail sales climbing to 4,10,853 units. The segment registered a 28.63 per cent increase over June last year and a 2.05 per cent rise compared with the previous month, making it the highest-ever June performance. Rural demand continued to outpace urban markets, with PV sales growing 35.09 per cent in rural areas against 24.67 per cent in urban regions.
“PV alternative-fuel share — CNG, Hybrid and EV combined — crossed the 40 per cent mark for the first time, at 40.35 per cent, with PV EV retails of 31,823 units, an all-time high,” said FADA President CS Vigneshwar.
Retail sales of two-wheelers stood at 18,28,458 units, marking a 21.22 per cent year-on-year increase and setting another June record. On a month-on-month basis, however, the segment saw a marginal decline of 0.89 per cent.
Dealers attributed the strong performance to healthy demand in the entry-level category, better supplies from original equipment manufacturers (OEMs) following the West Asia ceasefire, and a growing consumer preference for alternative powertrains. Electric vehicles accounted for 10.60 per cent of two-wheeler retail sales, crossing the double-digit mark for the first time, compared with 7.34 per cent in the corresponding period last year.
Commercial vehicle retail sales reached 90,972 units, reflecting a 16.88 per cent year-on-year increase and the best June performance on record. Rural markets remained a key growth driver, posting a 21.63 per cent rise.
Three-wheeler sales touched 1,20,889 units, up 16.20 per cent from a year earlier, with the segment also recording its highest-ever June sales. EV penetration in the category stood at 64.08 per cent. Tractor sales rose to 1,00,818 units, registering a 25.31 per cent year-on-year increase and a 21.33 per cent month-on-month gain, supported by pre-Kharif agricultural preparations.
FADA said dealer confidence remains positive for the coming months. According to the industry body, 51.24 per cent of dealers expect sales to grow, 41.79 per cent foresee a stable market, while only 6.97 per cent anticipate a decline.
“Expectations rest on the monsoon making up its deficit, Kharif sowing gathering pace and supplies staying normalised following the West Asia ceasefire and easing crude prices,” Vigneshwar said.
