India’s Auto Retail Sales Climb 5% in June, Driven by Two-Wheelers and PVs
The two-wheeler segment saw a 5% rise, with 14,46,387 units sold
India’s automobile retail sales surged by approximately 5% year-on-year in June, with all vehicle segments, including passenger vehicles (PVs) and two-wheelers, posting growth, according to the Federation of Automobile Dealers Associations (FADA). Total registrations reached 20,03,873 units, up 4.84% from 19,11,354 units in June 2024.
Passenger vehicle sales grew by 2% to 2,97,722 units, compared to 2,90,593 units last year. FADA President C S Vigneshwar noted that while heavy rains and tight market liquidity curbed footfall, selective support from incentive schemes and fresh bookings bolstered the segment. However, some dealers reported high inventory levels of around 55 days due to compulsory billing practices by certain PV manufacturers to meet volume targets.
The two-wheeler segment saw a 5% rise, with 14,46,387 units sold. “Festival and marriage-season demand provided a boost, but financing constraints and variant shortages tempered growth,” Vigneshwar said. He highlighted concerns over forced stock lifts, leading to elevated inventory aligned with festive targets.
Also Read: Hyundai India Shines Bright: Over 1.1 Million Sunroof Cars Sold in Record Time
Commercial vehicle (CV) registrations rose 7% to 73,367 units, navigating cost pressures from new taxation and mandatory air-conditioned cabins, though monsoon slowdowns and muted infrastructure demand affected conversions. Three-wheeler sales increased 7% to 1,00,625 units, while tractor registrations climbed 9% to 77,214 units.
For the April-June quarter, overall retail sales grew 5% to 65,42,586 units, with PVs up 3% to 9,71,477 units, two-wheelers up 5% to 47,99,948 units, CVs up 1%, three-wheelers up 12%, and tractors up 6% to 2,10,174 units.
Looking ahead, FADA expressed cautious optimism, citing an above-normal monsoon forecast (106% of long-period average) and an 11% rise in early kharif sowing to 262.15 lakh hectares, which should boost rural demand for two-wheelers. However, geopolitical tensions, potential U.S. tariff impacts, and shortages of rare-earth materials could challenge supply chains and consumer sentiment.
Also Read: Honda City Hybrid Slashed by Rs 95,000, Now Starts at Rs 19.90 Lakh
