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India's auto retails rise 4.85% in Q1 FY26 and jumps 4.84% in June

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Last Updated : Jul 07 2025 | 10:50 AM IST
The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for June'25.

In Q1 FY26, the overall retail sales rose 4.85% Y-o-Y whereas the month of June recorded a healthy 4.84% Y-o-Y.

The passenger vehicles (PVs) segment was up 2.59% in Q1 FY26 and 2.45% in June. The two-wheelers (2Ws) grew 5.02% in Q1 FY26. In June, 2Ws registered a growth of 4.73% on year.

In Q1 FY26, three wheelers (3Ws) surged 11.79% in sales and jumped 6.68% on year in June 2025.

The commercial vehicles (CVs) segment was up 1% in Q1 FY26 and rose 6.6% in June 2025. The Tractor segment rose 6.29% in Q1 FY26 and 8.68% in June 2025.

The FADA also mentioned that dealer sentiment appears tilted towards slowdownflat and de-growth expectations (42.8% and 26.1%) exceed growth forecasts (31.1%). Similarly, booking-pipeline traction remains unevenonly 21% of 2W, 38% of PV and 32% of CV dealers report healthy enquiry flows.

In the 2W arena, early monsoon showers and renewed rural activity have spurred interest, yet heavy rainfall, variant shortages and price increases effective July are moderating conversions.

PV faces high-base effects, limited new-model launches and tight financing, offset in part by festival planning and fresh incentive schemes.

CV continues to grapple with muted infrastructure demand, higher ownership costs from new taxation and mandatory AC-cabin norms, even as extended order pipelines provide some relief.

Overall, July is likely to witness mixed fortunesdriven by agrarian tailwinds and school reopenings, yet tempered by seasonal headwinds, elevated price points and liquidity constraints.

Against this mixed backdrop, FADA adopts a stance of cautious optimismleveraging rural demand drivers and government capex while remaining agile to navigate monsoon-related disruptions, supply constraints and liquidity pressures.

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First Published: Jul 07 2025 | 10:35 AM IST

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