India's retail car sales jump nearly 29% in June

India's passenger vehicle sales stood at at 4,10,853 units, recording an annual jump of 28.63 per cent in June, according to latest data released by the Federation of Automobile Dealers Associations (FADA).

The autodealers body reported that the total automobile industry retailed 25,57,234 units with a 21.83 per cent growth in June with tractors recording 25.31 per cent growth, two-wheelers at 21.22 per cent, commercial vehicles at 16.88 per cent and three-wheelers at 16.21 per cent.

Also read: JSW MG Motor to raise Windsor EV localisation above 70%, aims for double-digit growth


"Tractors recorded their second-best June ever. That such records have come in a seasonally transitional month underscores the structural depth of the India Growth Story and the widening aspirations," said FADA President Mr. C S Vigneshwar.

Passenger vehicle sales in rural areas recirded a robust annual growth of 35.09 per cent, as compared to urban growth of 24.67 per cent.

Alternatative fuel vehicles - CNG, hybrid and electric vehciles (EV) combined recorded a 40.35 pe cent growth, crossing the 40 per cent mark for the first time.

In June, the passenger vehcile alternative-fuel growth rate was as follows:

• CNG - 24.33%
• Hybrid - 8.27%
• EV - 7.75%

The automakers sold 31,823 units of EV passenger vehicles in June as FADA urged passenger vehicle OEMs to calibrate dispatches to
retail through the monsoon-soft July window so that dealer capital is not locked in aged stock.

Under commercial vehicle sales, rural areas grew 21.63 per cent annual while urban areas posted a growth of 12.75 per cent as goods-movement demand continued to broaden beyond the metros.

"Dealers cited steady freight activity, e-commerce-linked movement and normalising supplies, while commercial vehicle EV share rose to 3.53 per cent from 1.57 per cent a year ago — an all-time high," FADA said.

For the July-September period, 66.17 per cent dealers expect growthwhile only 3.98 per cent expect de-growth in the sector.

Two-Wheelers should benefit from the rural income cycle once sowing is complete, passenger vehicles from the festive build-up beginning with Ganesh Chaturthi and Onam in September, and commercial vehicles from sustained goods movement and infrastructure activity," FADA said in next 3 months outlook.

Dealers have identified a monsoon shortfall or say, an El Nino impact on rural demand as the single biggest risk, followed by further price hikes affecting affordability and inventory pile-up pressure.

"Overall, the next three months appear Optimistic — the strong Q1 FY’27 close, easing geopolitical and fuel-price uncertainty and broad policy continuity provide a supportive runway into the festive quarter, with the monsoon the key monitorable for India," it said.