Passenger vehicle sales in India grow by 28.6% YoY
What's the story
India's auto industry witnessed a major surge in passenger vehicle sales, growing by 28.63% year-on-year in June. The Federation of Automobile Dealers Associations (FADA) reported that the total automobile industry sold 25,57,234 units during the month, marking a significant growth of 21.83%. This increase was mainly driven by strong performances from tractors and two-wheelers.
Sales performance
Rural areas outperformed urban centers
Notably, rural areas outperformed urban centers in terms of passenger vehicle sales growth. The FADA data showed that alternative fuel vehicles, including electric vehicles (EVs), saw a whopping 40.35% increase in June itself. This was the first time such a high growth rate was recorded for these vehicles in a month.
Sector performance
Tractors and 2-wheelers drive growth
The auto industry saw tractors grow by 25.31% and two-wheelers by 21.22% in June. Commercial vehicles also posted a healthy growth of 16.88%. FADA President Mr. C S Vigneshwar said these records were achieved in a seasonally transitional month, underlining the structural depth of India's growth story and its widening aspirations.
Market outlook
EV sales and dealer outlook
In June, the auto industry sold 31,823 units of EV passenger vehicles. The FADA urged passenger vehicle OEMs to calibrate dispatches to retail through the monsoon-soft July window to avoid locking dealer capital in aged stock. For the July-September quarter, 66.17% of dealers expect growth while only 3.98% anticipate a decline in the sector.