India’s June vehicle sales cross 20 lakh units

New Delhi

Vehicle sales in India rose 4.84 percent year-on-year in June, crossing 20.03 lakh units across all segments, according to data released by the Federation of Automotive Dealers Associations (FADA) on Monday. The rise was supported by festival and marriage-season demand.

FADA President C.S. Vigneshwar said all categories grew: two-wheelers rose 4.73 percent, three-wheelers 6.68 percent, passenger vehicles (PV) 2.45 percent, commercial vehicles (CV) 6.6 percent, tractors 8.68 percent, and construction equipment saw a big jump of 54.95 percent.

However, some challenges remain. Passenger vehicle sales dropped 1.49 percent compared to May, despite a slight 2.45 percent rise from last June. Heavy rains, tight liquidity, and high inventory levels slowed footfall and sales. Dealers reported certain companies pushing compulsory wholesale targets, leaving them with around 55 days of stock.

For CVs, sales were down 2.97 percent month-on-month but rose 6.6 percent year-on-year. Early deliveries pushed up June numbers, though monsoon rains and higher costs from new taxes and mandatory air-conditioned cabins hurt later sales.

In the two-wheeler segment, early monsoon showers and rural activity boosted interest, but variant shortages and price hikes from July slowed final purchases.

Looking ahead to July, FADA expects mixed results. Rural demand and school reopenings may support sales, but high prices, heavy rains, and liquidity constraints may weigh on numbers.

Dealer sentiment is cautious, with many expecting either slow growth or a decline. Only about 31 percent expect further growth, while 43 percent expect sales to stay flat and 26 percent expect a drop.

FADA plans to stay flexible, focusing on rural drivers and government spending while managing supply and weather challenges.