Automobile Retail Sales Grow 4.84% In June 2025: FADA
"While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales,” he noted
PUNE: The total automobile retail sales in India jumped 4.84 per cent 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 per cent, three-wheeler at 6.68 per cent, passenger vehicle at 2.45 per cent, tractors at 8.68 per cent, construction equipment at 54.95 per cent and commercial vehicles at 6.6 per cent," said FADA President CS Vigneshwar.
"While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales,” he noted.
Early monsoon rains and rising EV penetration also shaped buying patterns, Vigneshwar pointed out.
"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," Vigneshwar said.
He said some dealers indicated that certain PV OEMs have introduced compulsory billing procedures—such as automatic wholesale debits—to meet volume targets, which led to inventory to stand at around 55 days.
“June thus painted a picture of modest but steadfast PV performance amid varied market cues,” Vigneshwar noted.
FADA said commercial vehicles declined 2.97 per cent month-on-month but grew a robust 6.6 per cent year-on-year expansion, with Vigneshwar noting that early-month deliveries buoyed volumes before monsoon-induced slowdowns and constrained liquidity dampening enquiries and conversions.
Vigneshwar said dealer 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 said. FADA highlighted in its near-term outlook that July is likely to witness mixed fortunes driven by agrarian tailwinds and school reopening, yet tempered by seasonal headwinds, elevated price points and liquidity constraints.
