FADA: India’s auto retail sector grew up by 4.84% in June 2025 compared to the same month in the last year, according to the Federation of Automobile Dealers Associations (FADA). This growth was the mainly supported by strong two-wheeler and commercial vehicle sales, even though there were challenges like early monsoon rains, financing issues, and high stock levels at dealerships.
FADA said that a total of 20,03,873 vehicles were sold in June 2025, up from 19,11,354 units in June 2024. However, when compared to May 2025, vehicle sales in June fell by 9.44%, mainly due to the monsoon season and tighter availability of loans.
Industry Growth Across Segments
In June 2025, two-wheeler sales increased by 4.73% compared to last year, but dropped by 12.48% from the previous month. Passenger vehicle (PV) sales saw a small yearly growth of 2.45%, while commercial vehicle (CV) sales went up by 6.6%. Tractor sales rose by 8.68%, and construction equipment sales saw a big jump of 54.95%.
FADA President C S Vigneshwar said, June showed a healthy 4.84% growth compared to last year. Early monsoon and seasonal demand helped rural sales, but issues like loan delays, price increases, and lack of some variants were still a concern.
Inventory and Dealer Sentiment
FADA: Vehicle inventory stayed high, especially for passenger vehicles (PVs), which had about 55 days’ worth of stock, as customer bookings remained slow. Dealers reported low customer interest, with only 21% for two-wheelers, 38% for PVs, and 32% for commercial vehicles (CVs). Retailers were mostly cautious—43% expect sales to stay flat in July, and 26% think sales may drop.
FADA said that it is cautiously optimistic for the next coming months. This positive outlook is supported by strong government spending, better-than-normal monsoon forecasts, and rising on rural demand. However, challenges like shortage of rare-earth materials, global tensions, and rising vehicle ownership costs and still need to be watched closely.
Also Read: Delhi Residents Left in fueling uncertainty as fuel bans
