India Auto Industry Records Best-Ever June, Retail Sales Cross 25.57 Lakh Units: FADA

July 6, 2026

New Delhi: India’s automobile retail market registered its best-ever June performance, with total vehicle sales reaching 25,57,234 units, reflecting a 21.83 percent year-on-year (YoY) growth and a 1.03 percent increase over May, according to data released by the Federation of Automobile Dealers Associations (FADA) on Monday.

Passenger Vehicles and EVs Drive Record Growth

Passenger vehicle (PV) sales emerged as the biggest contributor to the record performance, with 4,10,853 units sold during June, registering a 28.63 percent year-over-year (YoY) and 2.05 percent month-on-month (MoM) growth the highest-ever June sales for the segment.

FADA President C.S. Vigneshwar said rural demand continued to outperform urban markets, with rural PV sales growing 35.09 per cent compared to 24.67 per cent in urban areas.

He also highlighted a major milestone in India’s clean mobility transition.

“PV alternative-fuel share CNG, Hybrid and EV combined crossed the 40 percent mark for the first time at 40.35 per cent, while passenger EV retail sales touched an all-time high of 31,823 units,” Vigneshwar said.

Two-Wheelers, Commercial Vehicles Also Register Record June

Two-wheeler retail sales stood at 1,828,458 units, rising 21.22 percent YoY, making it the best June on record despite a marginal 0.89 percent decline compared to May.

Dealers attributed the strong performance to robust entry-level demand, improved vehicle supplies following the West Asia ceasefire and increasing consumer preference for electric mobility.

Notably, the EV share in the two-wheeler segment crossed the 10 per cent mark for the first time, reaching 10.60 per cent, up from 7.34 per cent a year ago.

Commercial vehicle retail sales climbed to 90,972 units, registering 16.88 percent YoY growth, while three-wheeler sales touched 120,889 units, up 16.20 percent over the previous year. EV penetration in the three-wheeler segment rose to 64.08 percent.

Meanwhile, tractor sales reached 100,818 units, recording 25.31 percent YoY growth and 21.33 percent MoM, supported by pre-Kharif agricultural activities.

Dealers Remain Optimistic

Looking ahead, FADA said dealer sentiment remains positive.

According to the industry body, 51.24 percent of dealers expect sales to grow further, 41.79 percent foresee a stable market, while only 6.97 percent anticipate a decline.

Vigneshwar said expectations are supported by improving monsoon conditions, stronger Kharif sowing, normalised vehicle supplies after the West Asia ceasefire and easing crude oil prices.