India’s Auto Retail Sales Rise 4.84 Percent in June 2025; EV Penetration Doubles
India’s auto retail sales rose 4.84% YoY in June 2025, crossing 20.03 lakh units, with EV sales nearly doubling. FADA reports seasonal demand boosted growth across all segments.
New Delhi. India's total automobile retail sales across all segments increased by 4.84 percent year-on-year in June 2025, exceeding 20.03 lakh units, according to data from the Federation of Automotive Dealers Associations (FADA). This growth was boosted by seasonal demand during the festive and wedding seasons.
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Electric vehicles (EVs) stood out, recording nearly double the volume compared to June 2024. FADA reported that nearly five out of every 100 passenger vehicles sold in June 2025 were electric, up from two in the same month last year.
“Every segment ended positively,” said FADA President C.S. Vigneshwar. “Two-wheelers grew by 4.73 percent, three-wheelers by 6.68 percent, passenger vehicles by 2.45 percent, commercial vehicles by 6.6 percent, tractors by 8.68 percent, and construction equipment by an impressive 54.95 percent.”
Despite the year-on-year growth, month-on-month trends showed mixed results. Passenger vehicle sales fell by 1.49 percent compared to May 2025, and commercial vehicle sales dropped by 2.97 percent. Vigneshwar pointed to heavy rainfall, cash flow issues, and rising ownership costs due to new taxes and mandatory air conditioning in commercial vehicles as reasons for this.
“Some manufacturers have started automatic wholesale billing to meet targets, pushing inventory levels to about 55 days,” he added.
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Looking forward, FADA anticipates mixed results for July. While rural demand and school reopenings might help sales, seasonal slowdowns, price increases, and financing difficulties could hinder growth.
Dealer sentiment remains cautious, with 42.8 percent expecting a slowdown or no growth, and only 31.1 percent anticipating improvement.
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