Summary :

India’s automobile retail sales grew by 5% in June 2025, according to the Federation of Automobile Dealers Associations (FADA). Passenger vehicle (PV) sales rose by 2.5% year-on-year, supported by a good monsoon and steady consumer demand, despite global challenges like rare earth material shortages and new US tariffs. FADA President CS Vigneshwar said June’s performance exceeded industry expectations and noted that no major carmaker has yet reported supply issues from the rare earth crisis. During Q1 FY26, PV retail sales grew by 2.59%, with volumes increasing from 2,90,593 units in June 2024 to 2,97,722 units in June 2025. Among key automakers, Maruti Suzuki posted a slight 0.5% growth, while Mahindra & Mahindra, Toyota Kirloskar, and Kia India saw strong year-on-year growth of over 11%, 15%, and 7% respectively. Growth was seen across all vehicle categories—two-wheelers rose 5%, three-wheelers 6%, tractors 9%, and commercial vehicles 7%. Despite rising input costs and global disruptions, India’s auto market remains strong, backed by resilient domestic demand.

Source: IBEF

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