Auto Industry Total Retail Sales Rise 21.83 Pc at 25,57,234 Units in June: FADA

Total automobile retail sales in India grew by 21.83 % year-on-year at 25,57,234 units in June, with the industry remaining cautiously optimistic going forward hoping for monsoon to make up for the deficit, Federation of Automobile Dealers Associations said on Monday.

In June last year total automobile retail sales in India stood at 20,98,996 units, Federation of Automobile Dealers Associations (FADA) said in a statement.

Passenger vehicles (PV) retail sales were at 4,10,853 units last month as compared to 3,19,412 units in June 2025, a growth of 28.63 %, it added.

Two-wheelers sales were at 18,28,458 units in June this year as compared to 15,08,378 units in the same month a year ago, at a growth of 21.22 %, it added.

FADA further said three-wheeler sales stood at 1,20,889 units last month as compared to 1,04,035 units in June 2025, up 16.2 %.

Commercial vehicles also witnessed a growth of 16.88 % at 90,972 units last month as compared to 77,836 units in June 2025, it added.

Commenting on the performance, FADA President C S Vigneshwar said, "June 2026 has been a landmark month for Indian auto retail, the best June ever recorded, with two-wheelers, three-wheelers, commercial vehicles, passenger vehicles and overall registrations each posting their highest-ever June figures." On the near-term outlook for the ongoing month, FADA said, dealer sentiment stays constructive, with 51.24 % of dealers expecting growth, 41.79 % anticipating a flat market and only 6.97 % foreseeing a decline.

"Expectations rest on the monsoon making up its deficit, Kharif sowing gathering pace and supplies staying normalised following the West Asia ceasefire and easing crude prices," the automotive dealers' body said.

Overall, it said,"The outlook for July 2026 appears cautiously optimistic with monsoon catch-up and rural cashflows the key swing factors ahead of the festive season." The passenger vehicles segment entered July with healthy booking pipelines, particularly in EVs and CNG, and fresh launches, while commercial vehicles should stay steady on freight and infrastructure-linked activity, FADA said.

In two-wheelers, improving rural cashflows, once rainfall catches up and the accelerating shift towards EV and fuel-efficient models should provide support, though deficient-rainfall pockets and the July OEM price hikes may keep some buyers in wait-and-watch mode, it added.

For the July-September 2026 period, FADA said dealer confidence strengthens markedly, "with 66.17 % expecting growth, the firmest medium-term reading in recent surveys, while only 3.98 % expect de-growth".

Notably, it added,"38.31 % of dealers have revised their FY27 retail outlook upward against just 16.42 % downward, signalling conviction that the record-setting first quarter of FY27 (a positive 15.35 % YoY growth) can carry into the festive season".

However, it said dealers identify a monsoon shortfall/El Nino impact on rural demand as the single biggest risk, followed by further price hikes affecting affordability and inventory pile-up pressure.