Auto sales up by 4.84% in June 2025 YoY; Dealers anticipate slowdown in July: FADA

India's vehicle retail sales have witnessed a 4.84% rise in June 2025 year-on-year. According to the data by the Federation of Automobile Dealers Associations (FADA), 20,03,873 units of vehicles were sold in June 2025 compared to 19,11,354 units in the same period last fiscal.

The 2-wheeler sales climbed by 4.73% to 14.46 lakh units YoY; 3-wheeler sales saw a 6.68% jump at Rs 1 lakh units; Passenger Vehicle sales up by 2.45% units to 2.97 lakh units, and Commercial Vehicle sales increased by 6.60% to 73,367 units in June 2025 YoY.

"The month of June recorded a healthy 4.84% YoY growth overall. Segment-wise, every category closed in the green: 2W at 4.73%, 3W 6.68%, PV 2.45%, Trac 8.68%, CE 54.95% and CV 6.6%," FADA President, CS Vigneshwar said.

However, on a month-on-month basis, vehicle retail sales have dropped by 9.44%. In May 2025, 22,12,809 units of vehicles were sold as per FADA. 2-wheeler retail sales dropped by 12.48% in June 2025 on a month-on-month basis, while Passenger vehicle sales declined by 1.49% in the same duration on a month-on-month basis.

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FADA attributed the month-on-month decline in 2-wheeler and PV retail sales to heavy monsoon, tight liquidity, and shift in festival or marriage demand.

"2W retails dipped 12.48% MoM but still notched a 4.73% gain on a YoY basis. While the 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. Several dealers cited compulsory billing and forced stock lifts—often via auto-debit wholesalers—leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals," the FADA President added.

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In contrast, commercial vehicle sales saw a 2.97% drop on a month-over-month basis, Fada added.

"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," he added.

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According to the auto federation's July outlook, the dealers have anticipated a slowdown in retail sales due to heavy rainfall, variant shortages, and price increases.

"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. Overall, 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," FADA mentioned.