Automobile retail sales increased by 5% in June, electric vehicle sales also increased

Automobile retail sales rose by five percent on a yearly basis in June. In this month, sales of all the vehicle segments, such as passenger and two-wheeler vehicles, rose. At 20,03,873 units, total automobile registrations during the previous month were 4.84 percent higher compared to 19,11,354 units in June 2024. Retail sales of passenger vehicles increased by two per cent year-on-year to 2,97,722 units during the previous month, compared to 2,90,593 units in the corresponding period last year.

FADA President CS Vigneshwar said that due to heavy rains and a lack of cash in the market, the number of people visiting the showroom and making inquiries remained low. The demand for festivals and the wedding season increased, but financial constraints and a lack of variety in between slowed down sales. He further said that the showroom currently has about 55 days of inventory (unsold vehicles). Retail sales of two-wheelers in June grew by five per cent year-on-year to 14,46,387 units. Commercial vehicle registrations grew by seven per cent to 73,367 units in June.

In the near future business scenario, FADA said that early Kharif sowing has increased by 11 per cent year-on-year to 262.15 lakh hectares. This underlines strong agricultural income and bodes well for two-wheeler demand in remote areas. However, emerging geopolitical tensions and US tariffs may impact consumer sentiment. The electric vehicle segment grew nearly double year-on-year in June. According to FADA, in June 2025, out of 100 passenger vehicles on the road, about five vehicles were electric. Whereas in the same month last year, this number was only two vehicles.