Nearly 5% of all passenger vehicle sales were EV in June, which is twice as many as the previous year.
According to the latest reports from the Federation of Automobile Dealers Associations (FADA), India’s auto retail industry experienced modest but solid growth in June 2025, with overall vehicle sales across segments up by 4.84% year-on-year. One noticeable highlight was the rapid growth in electric vehicle (EV) sales, which now account for nearly 5% of all new vehicle registrations, up from 2% in June of last year.
Raised from 6.07% in May to 7.28% in June
The EV segment continues to grow, with FADA reporting nearly double the EV sales in June 2024. Nearly five of every 100 passenger vehicles sold last month were electric. The two-wheeler EV category also grew, with its share jumping from 6.07% in May to 7.28% in June.
FADA President C.S. Vigneshwar stated, “Festival and wedding season demand helped the industry, but problems such as financing issues and limited availability of some models hampered overall sales. However, early monsoon rains and a growing interest in EVs shaped customer decisions this month.”
Segment-wise Performance: Mixed Trends
In June, all the major vehicle segments had yearly growth.
- Two-wheelers rose 4.73%
- Three-wheelers grew 6.68%
- Passenger vehicles were up 2.45%
- Commercial vehicles increased by 6.6%
- Tractors jumped 8.68%
- Construction equipment witnessed the biggest jump with 54.95% YoY growth
However, month after month, performance was mixed. Passenger vehicle sales also dropped 1.49% from May 2025, owing mainly to heavy rainfall, market liquidity problems, and fewer new launches. Dealers also reported feeling compelled by manufacturers to fulfill billing targets, with some companies adopting automated wholesale debit practices. As a result, PV inventory levels have increased to approximately 55 days.
Commercial Vehicles & CE Segment Get Infra Boost
While commercial vehicle sales dropped by 2.97% month-on-month, the segment experienced exceptional annual growth of 6.6% due to early deliveries and robust order pipelines. The construction tools segment also profited from increased government spending, with a 54.95% year-on-year growth and a notable 44.98% month-on-month rise.
FADA reported that the government’s focus on capital expenditure, particularly on roads, railways, and green-energy infrastructure, is anticipated to help further development in the CV and CE categories in the coming months.
Outlook for July
Looking ahead, FADA predicts that July will produce mixed results for the automobile industry. On the plus side, rural demand and the back-to-school season may improve two-wheeler sales. However, increased prices, ongoing rainfall, and financial issues may slow things down. Dealer feedback indicates that many expect sales to remain steady or even decline rather than improve dramatically.
Only 21% of two-wheeler dealers, 38% of passenger vehicle dealers, and 32% of commercial vehicle dealers reported high consumer interest this month. Still, FADA is cautiously optimistic, stating that a robust monsoon is predicted to be more than 106% of the typical average, which could enhance cash flow in rural regions and boost demand, particularly for two-wheelers and tractors.
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