The Federation of Automobile Dealers Association (FADA), the apex body representing automotive dealerships in the country, has released the retail sales data for June 2025, which saw a total of 2 million vehicles sold in the country, which was 4.84 percent higher YoY, but 9.4 percent lower than the previous month.

Last month, two-wheeler sales continued to be in the green with 1.44 million units sold, as against 1.38 million units sold last year. Three-wheeler sales grew by 6.6 percent, while passenger vehicle sales at 297,722 units, saw a flattish growth of 2.45 percent YoY. Tractor sales at 8.6 percent, construction equipment at 54.95 percent and commercial vehicle with 6.6 percent showed signs of healthy growth.  

C S Vigneshwar, President, FADA, said, “While two-wheelers showed some early-cycle softness, we remain confident of a robust ramp-up in the coming months as seasonal demand and targeted OEM initiatives take effect.”

He pointed out that while festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns in the two-wheeler segment.

“Several dealers cited compulsory billing and forced stock lifts – often via auto-debit wholesales – leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,” he noted.

In the passenger vehicle space despite elevated incentive schemes and fresh booking lent support, heavy rains and tight market liquidity impacted sales. “Some dealers indicated that certain PV OEMs have introduced compulsory billing procedures – such as automatic wholesale debits – to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues,” Vigneshwar said.

The CV segment saw early-month deliveries buoy volumes before monsoon-induced slowdowns and constrained liquidity dampened inquiries and conversions. The impact of new CV taxation along with mandatory air-conditioned cabins has elevated ownership cost, alongside muted infrastructure demand.

Cautious optimism

Looking ahead, the retail body anticipates a period of mixed fortunes. Above-average monsoon rains in July, are expected to boost rural demand, particularly for two-wheelers, thanks to stronger farm incomes highlighted by an 11.3 percent YoY increase in Kharif sowing. However, intense rainfall in some regions could create logistical challenges.

Simultaneously, substantial government capital expenditure from June to August on infrastructure projects like roads, railways, metros and green energy initiatives will continue to support the CV and CE segments.

Despite these positive drivers, several headwinds remain. Evolving geopolitical tensions and potential repercussions from US tariff measures necessitate careful supplychain management and could dampen consumer confidence. Furthermore, scarcity of rare-earth materials is hindering component production, which in turn limits overall supply and retail volumes.

In the two-wheeler market, early monsoon showers and renewed rural activity have sparked interest, but heavy rainfall, component shortages and price hikes effective this month are impacting conversions. Passenger vehicles face challenges from high-base effects, a limited number of new model launches and tight financing, although festival planning and new incentive schemes offer some counterbalance. Commercial vehicles continue to contend with subdued infrastructure demand, increased ownership costs due to new taxes and mandatory air-conditioned cabin regulations, though extended order pipelines provide some relief.

Vigneshwar expects that July is likely to see a blend of agrarian tailwinds and the positive impact of school reopenings, tempered by seasonal difficulties, higher prices and liquidity constraints.

Comments (0)

ADD COMMENT

Link Copied!

German luxury automotive brand BMW India is set to increase prices across its entire model range by up to 3 percent beginning 1 September. The company cites continued foreign exchange impacts and rising material and logistics costs as the primary reasons for the price adjustment.

Vikram Pawah, President and CEO, BMW Group India, said the company has seen significant sales growth in the first half of the year.

“BMW India’s growth and sales momentum in the first half of the year has been remarkable. However, factors like continued forex impact and global supply chain dynamics have been leading to increased material and logistics costs. Our commitment to offer best value and experience throughout customer journey is steadfast. In the festive season, we are geared to introduce several new power-packed profiles of our cars. As the strong demand for BMW’s luxurious, pioneering cars continues, we will deliver exceptional performance and innovation to our valued customers,” he said.

At present, BMW sells the locally produced the BMW 2 Series Gran Coupe, BMW 3 Series Long Wheelbase, BMW 5 Series Long Wheelbase, BMW 7 Series, BMW X1, BMW X3, BMW X5, BMW X7, BMW M340i and BMW iX1 Long Wheelbase.

in India. The company also offers a wide selection of imported models, including the BMW i4, BMW i5, BMW i7, BMW i7 M70, BMW iX, BMW Z4 M40i, BMW M2 Coupe, BMW M4 Competition, BMW M4 CS, BMW M5, BMW M8 Competition Coupe and BMW XM (Plug-in-Hybrid) as completely built-up units (CBU).

Comments (0)

ADD COMMENT

Link Copied!

In a joint effort to improve road safety, Skoda Auto Volkswagen India (SAVWIPL) and the SaveLIFE Foundation have successfully completed a two-year project on a high-risk section of National Highway 19 in Uttar Pradesh.

The initiative, named ‘Surakshit Sadkein, Surakshit Bharat’ (Safe Roads, Safe India), has resulted in a 7.5 percent reduction in road crash fatalities on the Agra–Etawah–Chakeri corridor since its launch in November 2022.

The program benefited over 720,000 commuters and focused on a comprehensive, evidence-based approach to road safety, addressing four key areas:

Engineering: Over 7,000 engineering hazards were fixed, with the addition of crash barriers, speed-calming measures and improved pedestrian facilities.

Enforcement: Electronic enforcement tools and new signage were deployed to improve traffic management.

Emergency Care: More than 300 first responders were trained in Basic Trauma Life Support.

Education: Awareness campaigns, including billboards and local outreach, reached a wide audience and commercial vehicle drivers received training in anticipatory driving.

This project was a collaboration with several government bodies, including the National Highways Authority of India (NHAI) and the Uttar Pradesh Police. The partners hope this successful model can be replicated in other high-risk areas across the country.

Piyush Arora, Managing Director & CEO, SAVWIPL, said, “For us, progress in the automotive sector is as much about building safer communities as it is about innovation. The Group takes safety seriously – our Made-in-India models have achieved full 5-star safety ratings, and we are committed to extending that safety beyond our cars to the roads we share. The NH 19 Zero Fatality Corridor with SaveLIFE Foundation shows that when engineering, enforcement, training, and awareness come together, lives are saved. This measurable impact strengthens our vision of a self-reliant India, where independence also means the freedom to travel without fear.”

This is the second Vision Zero Fatality Corridor project supported by SAVWIPL, following the Mumbai–Pune Highway initiative, which achieved a 61 percent reduction in fatalities.

Comments (0)

ADD COMMENT

Link Copied!

The Indian automotive industry has again shot back in the green with wholesales of 1.97 million vehicles sold in July 2025, which is 7 percent higher compared to 1.84 million units sold last year. This also marks a 2 percent growth over last month, when a total of 1.93 million vehicles were sold in the country.

Interestingly, the passenger vehicle segment has reported a slight decline with 340,772 units sold, as against 341,510 units sold last for the same period last year. On the other hand, compared to the previous month, the segment clocked a 9 percent growth. SUVs continue to power the segment with a total of 192,763 units sold last month.

The three-wheeler segment, with wholesale of 69,403 units, reported a healthy 17 percent growth YoY and 12 percent growth MoM.

The two-wheeler segment witnessed a total of 1.56 million units being sold last month, which was 9 percent higher compared to last year, but a flat growth over June 2025. While scooter and motorcycle sales grew at 16 percent and 5 percent on a year-on-year basis, respectively, the motorcycle segment witnessed a 10 percent decline over last month.

Going forward, the automotive industry is expecting the healthy monsoon, rural sentiment and the beginning of festival season to drive growth further.

Rajesh Menon, Director General, SIAM said, “All vehicle segments posted stable performance in July 2025, though overall sentiments in the Passenger Vehicles segment has remained subdued so far. Three Wheelers posted their highest ever sales of July in 2025, with a growth of 17.5 percent as compared to July 2024. With the advent of the festive season beginning with Onam festivities in the latter part of August, the Indian auto industry remains cautiously optimistic for the demand momentum to pick up in the coming months.”

Comments (0)

ADD COMMENT

Link Copied!

Tata Motors (TML) has announced its financial results for the quarter ending June 30, 2025. The company's consolidated revenue was INR 10,440 billion, a 2.5 percent decrease from the previous year.

The company shared was a challenging quarter for the company, as it was impacted by a decline in volumes across all its businesses and a drop in profitability, particularly at Jaguar Land Rover (JLR).

The consolidated reported a net profit of INR 40.03 billion, which was supported by a sharp reduction in finance costs. The free cash flow for the automotive sector was a negative INR 1,230 billion, primarily due to adverse working capital from seasonality and tariffs.

JLR delivered its 11th consecutive profitable quarter, despite challenging global economic conditions. JLR's revenue was GBP 6.6 billion, a 9.2 percent decrease compared to Q1 FY2025. The company's profitability and cash flow were directly and materially impacted by the application of 27.5 percent US trade tariffs on UK- and EU-produced cars exported to the US. The decrease in profitability was also influenced by foreign exchange headwinds. However, a newly signed UK-US trade deal, effective from 30 June2025, is set to reduce tariffs on UK-produced vehicles exported to the US from 27.5 percent to 10 percent. The EU-US trade deal, announced on 27 July 2025, will also reduce tariffs on JLR’s EU-produced vehicles exported to the US from 27.5 percent to 15 percent. The company's PBT for the quarter was GBP 351 million.

Adrian Mardell, JLR Chief Executive Officer, said, “Thanks to our talented people and the robust foundations we have built at JLR, we delivered an 11th successive profitable quarter amid challenging global economic conditions. We are grateful to the UK and US Governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27 July 2025. Looking ahead, we remain focused on delivering our transformational Reimagine Strategy, including investing GBP 3.8 billion this financial year to support the development of our next-generation vehicles, including our stunning new electric Range Rover and Jaguar models.”

The Tata Commercial Vehicles (Tata CV) business saw its revenue decrease by 4.7 percent to INR 170 billion. Despite lower volumes, the business maintained double-digit EBITDA margins of 12.2 percent, an improvement of 60 bps. This was a result of better realisations and cost savings. Domestic sales volumes were down by 9 percent YoY, while exports increased by 68 percent. The business reported a net profit of INR 16.17 billion.

Girish Wagh, Executive Director Tata Motors, said, “Q1 FY26 was a challenging quarter for the commercial vehicle industry, with subdued demand across key segments impacting overall performance. We also witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth. Our commitment to product innovation and customer-centricity remained strong. The launch of the Ace Pro mini-truck in multiple powertrain options received encouraging initial market response, reaffirming our focus on delivering relevant and affordable mobility solutions. Despite adverse volumes, the business delivered 12.2 percent EBITDA and healthy ROCE of about 40 percent. The acquisition of IVECO Group is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations, we will be unlocking new avenues for operational excellence, product innovation and customer-centric solutions.”

Tata Passenger Vehicles (Tata PV) revenue declined by 8.2 percent to INR 1,090 billion, reflecting softness in industry demand and the transition to new models. As a result, the EBITDA was 4 percent, down by 180 bps. The net loss for the quarter was INR 870 million, with profitability impacted by adverse volumes, realisations and the effect of leverage. However, these negative impacts were partially offset by continuous efforts to save on variable costs.

Shailesh Chandra, Managing Director TMPV and TPEM, said, “Q1 FY26 was a subdued quarter for the passenger vehicle industry, with volume pressures persisting across most segments. Demand softness weighed on overall performance, although the Electric Vehicle category remained a bright spot, supported by new launches and growing customer interest. Our continued focus on customer engagement and portfolio renewal remained strong during the quarter. New launches – Altroz and Harrier.ev –received encouraging initial market response, with their full impact expected to unfold in the coming months. Looking ahead, while the overall industry growth is expected to remain muted, we are confident that our recent and forthcoming series of launches – across ICE and EVs – will enable us to outperform the market and strengthen our position across key segments.”

Comments (0)

ADD COMMENT

Link Copied!