Automobile retail sales rise 5% in June, passenger vehicles up 2.5%: Federation of Automobile Dealers Associations (FADA)
- IBEF
- July 8, 2025
Retail sales of passenger vehicles (PVs) in India rose by 2.5% YoY in June 2025, supported by a favourable monsoon and steady consumer demand, despite the headwinds posed by global uncertainties such as rare earth material shortages and new tariff measures introduced by the United States (US). Overall, automobile retail sales expanded by 5% during the month, reflecting a broadly resilient performance across categories. President of the Federation of Automobile Dealers Associations (FADA), Mr. CS Vigneshwar, remarked that June outperformed industry expectations and highlighted that no major original equipment manufacturer (OEM) has yet flagged supply constraints stemming from the rare earth crisis.
During Q1 FY26, PV retail sales grew by 2.59%, with volumes increasing from 2,90,593 units in June 2024 to 2,97,722 units in June 2025. Among leading automakers, Maruti Suzuki India posted a marginal gain of 0.5%, while Mahindra & Mahindra, Toyota Kirloskar Motor, and Kia India registered robust YoY growth of over 11%, 15%, and 7%, respectively. The growth extended across all vehicle segments, two-wheelers rose by 5%, three-wheelers by 6%, tractors by 9%, and commercial vehicles by 7%. Despite concerns around input costs and global disruptions, the sustained performance highlights the strength of India’s domestic demand and the sector’s ability to adapt to evolving macroeconomic and supply-side conditions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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