Auto Sales June 2025: FADA Notes 4.84% Growth in the Indian Auto Sector

According to the latest data from the Federation of Automobile Dealers Associations (FADA), the Indian automobile industry experienced a year-on-year (YoY) growth of 4.84% in June 2025. Last month, nearly 20.04 lakh vehicles were sold in India, and in the first half of 2025, the industry saw sales of 65.42 lakh vehicles. 

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The biggest segment in the industry, as always, is the two-wheeler space, which saw sales of 14.46 lakh units in June 2025. This is a YoY growth of 4.73 per cent (13.81 lakh units sold in June 2024), but a 12.48 per cent month-on-month (MoM) decline compared to May 2025, when the industry saw sales of 16.52 lakh units. In the first half of 2025, the Indian auto sector saw sales of 47.99 lakh two-wheelers, which is a YoY growth of 5.02 per cent, as 45.70 lakh two-wheelers were sold in the same period last year. 

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2.98 lakh passenger vehicles were sold in India in June 2025, which indicates a YoY growth of 2.45 per cent (2.90 lakh units were sold in June 2024), but a MoM decline of 1.49 per cent as 3.02 lakh units were sold in May 2025. Between January and June 2025, 9.71 lakh passenger vehicles were sold in India, representing a 2.59 per cent increase over the same period last year.

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The commercial vehicle (CV) sector saw sales of 73,367 units in June 2025, which was 6.60 per cent more than in June 2024 (68,825 units). A similar story here too, since sales in June 2025 declined by 2.97 per cent compared to May 2025. The biggest loser in the CV sector is the heavy commercial vehicle segment with sales declining 0.12 per cent YoY and 12.04 per cent MoM, with 21,447 units sold in June 2025, 21,473 units sold in June 2024 and 24,382 units sold in May 2025. 

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A majority of the segments in the Indian automotive segment registered a MoM decline in sales in June 2025 compared to May 2025. FADA notes that financial constraints and the monsoon season hampered sales, despite various incentive schemes. FADA says it adopts a stance of cautious optimism, stating that rural demand and government capex (capital expenditure) should help with sales, while also being cautious about monsoon-related disruptions, supply constraints (like rare earth materials) and liquidity pressures.