India's auto sector witnessed a mixed bag of results in June 2025. While total retail auto sales rose 5% year-on-year (YoY) to over 20 lakh units, month-on-month (MoM) volumes dropped 9% due to seasonal factors. The data, released by FADA, highlights strong traction in Electric Vehicles (EVs) and select categories like commercial equipment and tractors. However, key segments like two-wheelers and passenger vehicles showed signs of fatigue.
June 2025 Category-Wise Auto Retail Performance
Segment | Units Sold | MoM % Change | YoY % Change |
Two-Wheelers (2W) | 14,46,387 | -12% | +5% |
Three-Wheelers (3W) | 1,00,625 | -4% | +7% |
Passenger Vehicles (PV) | 2,97,722 | -1% | +2% |
Tractors (TRAC) | 77,214 | +7% | +9% |
Commercial Equipment (CE) | 8,558 | +45% | +55% |
Commercial Vehicles (CV) | 73,367 | -3% | +7% |
Total | 20,03,873 | -9% | +5% |
While two-wheelers continue to dominate overall sales volumes, the commercial equipment (CE) segment emerged as the best performer, growing 55% YoY and 45% MoM. Tractors followed closely with strong rural demand fueling a 9% YoY rise. In contrast, the passenger vehicle segment showed only marginal growth, indicating a pause in momentum.
Electric 3-Wheelers: Quietly Leading the EV Revolution
A key highlight from June 2025 was the growing dominance of Electric Vehicles in the 3-wheeler segment. EVs now command a 60% market share, up from 55% in June 2024.
Fuel-wise Market Share in Three-Wheelers
[caption id="" align="alignnone" width="454"]
Electric 3-Wheelers: Quietly Leading the EV Revolution[/caption]The shift is clear: buyers are increasingly opting for EVs in last-mile mobility, aided by government subsidies, low running costs, and improving charging infrastructure. Meanwhile, CNG/LPG share declined to 28%, suggesting a growing preference for cleaner and more cost-efficient EV alternatives.
Two-Wheelers: Seasonal Weakness Weighs on Volumes
Despite a 5% YoY growth, two-wheeler (2W) sales dropped 12% MoM, likely due to seasonal factors post-festive inventory push. However, the segment remains the largest contributor to retail sales at 1.45 million units, underlining the mass-market nature of 2Ws in India’s mobility story.
Passenger Vehicles: Growth Slows, Competition Rises
The passenger vehicle (PV) segment posted a muted 2% YoY growth and -1% MoM decline. With the market seeing intense competition and rising prices, many buyers appear to be deferring purchases. However, new launches in the SUV and EV space could re-ignite interest in upcoming months.
Tractors & Rural Demand Stay Resilient
Tractors showed a healthy 9% YoY jump, with a 7% increase MoM—reflecting robust rural sentiment and early signs of kharif season demand. This segment continues to be an under-the-radar performer in the broader auto narrative.
Commercial Vehicles: Mixed Performance Amid Uncertainty
Commercial vehicles (CVs) reported a 7% YoY rise but fell 3% MoM, likely due to moderation in fleet replacement and infrastructure-related demand. The industry awaits policy cues and monsoon impact for further direction.
What Lies Ahead: Outlook for H2 2025
The auto sector's performance in June 2025 signals that while growth is intact, momentum is increasingly segment-specific. The steady rise in EV penetration—especially in three-wheelers—is a notable trend. However, subdued MoM numbers across categories may reflect caution ahead of the festive season.
Key themes to watch:
- EV acceleration across categories beyond 3Ws
- PV revival through new product launches
- Two-wheeler demand in rural and tier-2/3 cities
- Monsoon progress and its impact on tractor and CV sales
- Macro cues including fuel prices, inflation, and interest rates
Conclusion: EVs Charge Ahead, but Sector Remains in Transition
India’s auto sector in June 2025 reflected a classic tale of transition—rising EV adoption, divergent growth across segments, and evolving consumer behavior. With demand pockets strengthening and policy tailwinds favoring electrification, the outlook for H2 2025 remains cautiously optimistic.
Easy & quick
Leave A Comment?