Auto Retail Sales Jump 21.8% in June; SUVs, Two-Wheelers and Tractors Drive Growth: FADA

Automobile retail sales in India rose 21.83 per cent year-on-year in June, with registrations increasing across every major vehicle segment, according to data released by the Federation of Automobile Dealers Associations (FADA) on Monday. 

Total vehicle registrations stood at 2,557,234 units during the month, compared with 2,098,996 units in June last year.

Passenger vehicle registrations increased 28.6 per cent to 410,853 units, while two-wheeler retail sales climbed 22 per cent to 1,415,572 units.

Commercial vehicle sales rose 16.9 per cent to 90,972 units, three-wheeler registrations grew 16.2 per cent to 120,889 units, and tractor sales increased 25.3 per cent to 100,818 units.

Passenger vehicle sales continued to benefit from strong demand for sport utility vehicles, new model launches and attractive financing schemes. Even so, dealers remained cautious over inventory levels, which continued to stay above the preferred range in several markets.

Maruti Suzuki retained its lead in the passenger vehicle segment with retail sales of 167,834 units, giving it a market share of 40.85 per cent. Tata Motors followed with 57,009 units, while Mahindra & Mahindra retailed 54,099 vehicles. 

Hyundai Motor India recorded retail sales of 44,163 units during the month.

FADA said demand for two-wheelers remained healthy across both urban and rural markets, supported by favourable monsoon conditions, improved agricultural sentiment and better access to vehicle financing. Tractor sales also benefited from stronger rural activity and higher farm confidence.

Retail sales of commercial vehicles were supported by replacement demand, ongoing infrastructure projects and steady freight movement. However, dealers continued to highlight financing challenges and delayed payments in some regions.

Tata Motors remained the largest commercial vehicle retailer with sales of 30,991 units, followed by Mahindra & Mahindra at 25,015 units and Ashok Leyland with 15,337 units.

As per FADA, the outlook for July remains encouraging, backed by expectations of a normal monsoon, improving rural incomes, continued government spending on infrastructure and upcoming vehicle launches.

The dealers' body, however, cautioned that passenger vehicle inventory management, financing availability and geopolitical developments globally will remain important factors influencing demand in the coming months.