Vehicle retail sales surged 22% year-on-year to 2.56 million units in June, the highest-ever for the month, underscoring sustained demand for two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles, showed data collated by the Federation of Automobile Dealers Associations (Fada).
Notably, the robust increase in retails, as measured by vehicle registrations, was helped by a low base, as consumer demand was weak in the months running up to the goods and services tax (GST) cut in September 2025.
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Dealers are confident of the growth momentum lasting on expectations the southwest monsoon would recoup its deficit in the coming months, and kharif sowing would gather pace, driving rural sales. Supplies of raw materials and natural gas to automakers are also expected to normalise following the US-Iran ceasefire while easing crude oil prices is likely to lift consumer sentiment.
Sales of two-wheelers climbed 21% in June, while three-wheelers, passenger vehicles and commercial vehicles clocked increases of 16%, 29% and 17%, respectively, according to Fada. Tractors too recorded their second-best June ever, with sales rising by 25% last month.
