Automobile retail sales in India rose 21.83% year-on-year to a record 25,57,234 units in June 2026, making it the best-ever June for the industry.
The data released by the Federation of Automobile Dealers Associations (FADA) pertains to two-wheelers, three-wheelers, passenger vehicles and commercial vehicles.
Tractors led the show
On a month-on-month basis, retail sales increased 1.03%, with passenger vehicles registering the highest growth of 28.63%, followed by tractors at 25.31%, two-wheelers at 21.22%, commercial vehicles at 16.88% and three-wheelers at 16.20%.
Retail sales of wheeled construction equipment declined 40.94% on a high base.
Segment Performance
Two-wheeler retail sales rose 21.22% year-on-year to 18,28,458 units, though they slipped 0.89% sequentially.
FADA attributed the decline to rural markets, where sales fell 4.55% amid the delayed and uneven south-west monsoon, while urban sales grew 4.25%.
Two-Wheelers
Entry-level demand remained healthy during the month. OEM supplies also improved following the West Asia ceasefire.
Electric two-wheelers crossed the double-digit market share for the first time. EV penetration in the segment rose to 10.60% from 7.34% a year earlier.
Commercial Vehicles
Commercial vehicle retail sales increased 16.88% year-on-year to a record 90,972 units. Rural markets led the growth, with sales rising 21.63%.
Among segments, light commercial vehicles grew 21.10%, medium commercial vehicles 16.81% and heavy commercial vehicles 8.26%. EV penetration in commercial vehicles touched an all-time high of 3.53%.
Passenger Vehicles
Passenger vehicle retail sales sales rose 28.63% year-on-year and 2.05% month-on-month to a record 4,10,853 units.
Alternative-fuel vehicles continued to gain traction. Combined sales of CNG, hybrid and electric vehicles accounted for 40.35% of passenger vehicle retail sales.
However, dealer inventory increased to 32-34 days at the end of June, above FADA’s recommended level of 21 days.
Three-Wheelers And Tractors
Three-wheeler retail sales rose 16.20% year-on-year to 1,20,889 units. EV penetration in the segment reached 64.08%.
Tractor sales grew 25.31% year-on-year and 21.33% over May to 1,00,818 units, making it the second-best June on record.
Electric Vehicles
Total EV retail sales across all vehicle categories reached a record 3,06,220 units during the month. Overall EV penetration stood at about 12.5%. Top of FormBottom of Form
Leadership comment
FADA President C S Vigneshwar said June had been a landmark month for Indian automobile retail, with every major segment recording its highest-ever June sales.
He said improving rural demand, normalised supplies and growing EV adoption had supported the strong performance.
Outlook
FADA said dealer sentiment remained positive for July, with 51.24% expecting growth, 41.79% anticipating stable sales and only 6.97% forecasting a decline.
For the July-September quarter, 66.17% of dealers expect growth, supported by monsoon recovery, Kharif sowing, festive demand and stable supply conditions, though monsoon performance, price hikes and inventory levels remain key risks.