FADA Releases June’25 Vehicle Retail Data

Mumbai, INDIA: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for June’25.

Q1 FY26 Retails

Reflecting on Q1 FY26 Auto Retail results, FADA President Mr. C S Vigneshwar said: “In Q1 FY26, retail sales tracked exactly to our forecasts—overall volumes rose 4.85% YoY, with PV up 2.59% and 2W at 5.02%, alongside 3W +11.79%, CV +1%, CE +10.59% and Trac +6.29%. While 2W showed some early-cycle softness, we remain confident of a robust ramp-up in the coming months as seasonal demand and targeted OEM initiatives take effect.”

June’25 Retails

Reflecting on June 2025 Auto Retail results, FADA President Mr. C S Vigneshwar said: “The month of June recorded a healthy 4.84% YoY growth overall. Segment-wise, every category closed in the green: 2W at 4.73%, 3W 6.68%, PV 2.45%, Trac 8.68%, CE 54.95% and CV 6.6%.

2W retails dipped 12.48% MoM but still notched a 4.73% gain on a YoY basis. While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns. Several dealers cited compulsory billing and forced stock lifts—often via auto-debit wholesales—leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals.

PV retails slipped 1.49% MoM yet delivered a 2.45% YoY uplift. Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support. Some dealers indicated that certain PV OEMs have introduced compulsory billing procedures—such as automatic wholesale debits—to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues.

CV retails declined 2.97% MoM while achieving a robust 6.6% YoY expansion. Early-month deliveries buoyed volumes before monsoon-induced slowdowns and constrained liquidity dampened enquiries and conversions. Members pointed to the impact of new CV taxation and mandatory air-conditioned cabins, which have elevated ownership costs, alongside muted infrastructure demand. Overall, June reflected a resilient CV segment adeptly navigating cost pressures and a softening economy.”

Near-Term Outlook

In the near term, above-normal monsoon rains—forecast at over 106% of the LPA in July, with regional variances—should bolster rural demand even as heavy-to-very-heavy precipitation zones introduce logistical complexities. Early Kharif sowing, up 11.3% YoY to 262.15 lakh hectares, underlines stronger farm incomes and augurs well for two-wheeler uptake in the hinterlands. Simultaneously, robust government capital expenditure through June–August—targeting roads, railways, metros and green-energy projects—will underpin CV and CE segments. However, evolving geopolitical tensions and potential spill-over from US tariff measures warrant vigilant supply-chain management and could temper consumer sentiment. Also, challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes.

As we enter July 2025, dealer sentiment appears tilted towards slowdown—flat and de-growth expectations (42.8% and 26.1%) exceed growth forecasts (31.1%). Similarly, booking-pipeline traction remains uneven—only 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 fortunes—driven by agrarian tailwinds and school reopening’s, yet tempered by seasonal headwinds, elevated price points and liquidity constraints.

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

Key Findings from our Online Members Survey

• Liquidity

• Neutral              48.86%
• Bad                     31.82%
• Good                  19.32%
• Sentiment
  • Neutral              47.73%
  • Bad                     30.30%
  • Good                  21.97%
• Expectation from July’25

• Flat                      42.80%
• Growth               31.06%
• De-growth         26.14%