India auto retail sales rise 21.8% YoY to record 2.56 million units in June

The Federation of Automobile Dealers Associations reported that India’s auto retail market recorded its strongest June ever, selling 2,557,234 vehicles—a 21.83% year‑on‑year increase. Passenger‑vehicle sales reached 410,853 units, up 28.63% YoY, while two‑wheelers logged 1,828,458 units, a 21.22% rise. Three‑wheelers (120,889 units, +16.2%), commercial vehicles (90,972 units, +16.88%) and tractors (100,818 units, +25.31%) also posted record‑high figures.

Alternative‑fuel cars (CNG, hybrid and electric) crossed the 40% share threshold for the first time, accounting for 40.35% of passenger‑vehicle sales, with 31,823 electric passenger cars sold. Electric two‑wheelers hit a double‑digit share of 10.6%. Rural demand led growth, outpacing urban markets. Maruti Suzuki remained the sector leader with 1,47,187 units (40.63% market share), while Tata Motors posted the fastest YoY gain (+67.4%) and Mahindra & Mahindra grew 27.66%.

Dealer sentiment was broadly constructive: 51.24% expect further growth, 41.79% anticipate a flat market and 6.97% foresee a decline. Outlook depends on a timely monsoon, Kharif sowing and stable supplies after the West Asia cease‑fire. The broader auto sector also saw a rally on July 6, with the BSE Auto index up 1.34% and notable gains in TVS Motors, M&M and Bajaj Auto.