Nearly 767,000 passenger vehicles (cars, sport utility vehicles, and vans) and 4.05 million two-wheelers (motorcycles, scooters, and mopeds) were sold during the period, averaging 18,261 PVs and 96,500 two-wheelers per day.
Auto industry representatives and the government have met on the issue and sources told Moneycontrol that the Centre is mulling a refund of compensation cess which car dealers have paid for their purchases. However, any relief is possible only after the new rates kick in.
During August, festive enquiries were strong, said FADA, and buyers had deferred purchases to September due to the announcement of new and lower GST rates.
The overall retail sales grew 4.84% year-on-year (y-o-y) at 20,03,873 units in June 2025.
Passenger vehicle sales witnessed strong SUV demand, but numbers were offset by sluggish sales in the entry-level segment — resulting in a meagre 1.6 percent increase across the segment.
'February witnessed a broad-based downturn across all categories,' FADA President C S Vigneshwar said in a statement
A critical issue for motor insurance is the high percentage of uninsured vehicles because of non-compliance with mandatory insurance laws," says Galaxy Health Insurance CEO
oncerns about shorter working days, weak rural liquidity, and inflationary pressures persist, creating uncertainty about how much growth can be achieved.
Overall retail sales stood at 21,49,117 units in January 2024.
'We could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India,' says FADA
As per auto retail body FADA, potential challenges such as inventory overstock and economic headwinds may affect sales momentum during November and December this year.
SUV models such as Mahindra Thar (3-door version) and XUV 7OO, Kia Seltos, Toyota Hyryder and Fortuner, Maruti Suzuki Grand Vitara and Jimny are seeing discounts up to few lakhs of rupees. Some SUVs such as Creta and Ertiga are bucking the trend.
Industry players say that the jump in retail sales witnessed in the first 25 days of this festival season is attributed to factors including attractive discounts, tailor-made financing options, new models and rising incomes.
FADA's assessment is reflects a far more optimistic outlook, with a target of 45 lakh units in this year's festive period, as compared to the sale of 38 lakh vehicles during last year's 42-day festive period.
FADA reported that sales for major brands like Mahindra, Swaraj, and John Deere increased year-on-year in September. However, on a month-on-month basis, sales saw a slight decline of nearly 3 percent from the 65,478 units sold in August.
PV sales saw steep decline of 18.81% YoY while CV sales fell 10.45% YoY, 'reflecting subdued market conditions and weak government spending', says FADA
While the festive season and improved rural demand present promising opportunities for growth, ongoing weather uncertainties and high inventory levels may temper the overall recovery, it stated.
According to FADA president Manish Raj Singhania, while there has been some reduction in factory despatches by a few carmakers, the tentative wholesale figure is turning out to be higher than the actual retail numbers.
The primary objective of the study was to assess and quantify customer experience across sales, after-sales service and product quality in the passenger vehicle category
Dealership lots are chock-full with unsold vehicles as potential buyers seem to be waiting for the discounts and add-on offers that come during the festive season sales, which has rolled around later this year than in the previous year. For canny buyers, though, the spate of rebates on offer could translate into an early bonanza.
The auto retail body has said that the vehicle stockpile has climbed to 70-75 days now as against the ideal inventory of 30-35 days.
The total electric vehicles sales for July 2023 were at 1,16,221 units, according to the monthly sales data from Federation of Automobile Dealers' Association (FADA)
Total passenger vehicle retail sales rose to 320,129 units in July, as compared to 290,564 units in July 2023.
Auto sector looks for big bang reforms to sustain its growth momentum and propel country’s economy
The industry has also sought sops to promote electric vehicles and suggested the government bring in additional incentives for scrapping of vehicles in the upcoming budget.