India's June auto sales rise 21.8%, hit record high

India's automobile retail market recorded its strongest-ever June performance, with vehicle sales rising 21.83 per cent year-on-year to 25,57,234 units, driven by robust demand across segments and strong rural buying, according to data released by the Federation of Automobile Dealers Associations (FADA) on Monday. According to the official data, the June sales also marked a 1.03 per cent increase over May, making it the best June on record for the domestic auto retail industry.Passenger vehicle (PV) retail sales rose 28.6 per cent year-on-year to 4,10,853 units, while registering a 2 per cent month-on-month increase. Rural markets outpaced urban demand, with sales surging 35.1 per cent compared with a 24.7 per cent rise in urban areas.
FADA President C.S. Vigneshwar said alternative fuel vehicles continued to gain traction, with the combined share of CNG, hybrid and electric passenger vehicles crossing the 40 per cent mark for the first time."PV alternative-fuel share — CNG, Hybrid and EV combined crossed the 40 per cent mark for the first time, at 40.35 per cent, with PV EV retails of 31,823 units, an all-time high," he said.Two-wheeler retail sales stood at 18,28,458 units in June, up 21.22 per cent from a year earlier, making it the best June on record for the segment despite a marginal 0.89 per cent decline compared with May.
According to FADA, dealers attributed the strong performance to healthy entry-level demand, improved vehicle supplies following the West Asia ceasefire and a growing shift towards cleaner powertrains. Electric two-wheelers also achieved a significant milestone, with their retail share crossing 10 per cent for the first time at 10.60 per cent, up from 7.34 per cent a year ago.Commercial vehicle retail sales climbed 16.88 per cent year-on-year to 90,972 units, also marking the highest June sales on record. Rural demand remained strong, growing 21.63 per cent over the previous year.Three-wheeler sales reached 1,20,889 units, up 16.20 per cent year-on-year, with electric vehicles accounting for 64.08 per cent of total retail sales in the segment. Tractor sales also posted robust growth, rising 25.31 per cent annually to 1,00,818 units and 21.33 per cent over May, supported by pre-Kharif agricultural activities.
Looking ahead, automobile dealers remain optimistic about market prospects. According to the FADA survey, 51.24 per cent of dealers expect sales growth in the coming months, while 41.79 per cent foresee a stable market and only 6.97 per cent anticipate a decline.Vigneshwar said expectations are supported by the progress of the monsoon, improved Kharif sowing, stable vehicle supplies following the easing of geopolitical tensions in West Asia and softer crude oil prices, all of which are expected to support demand in the months ahead.