FADA June 2026 Auto Retail Performance

The Federation of Automobile Dealers Associations (FADA) released vehicle retail data for June 2026, reporting the best-ever June in Indian auto retail history with total registrations reaching 2,557,234 units, representing a 21.83% year-on-year growth and 1.03% month-on-month increase. This performance marked record June figures across all major categories including Two-Wheelers, Three-Wheelers, Commercial Vehicles, Passenger Vehicles, and overall registrations.

Category-wise Performance Breakdown

Two-Wheeler retails reached 1,828,458 units, up 21.22% YoY but down 0.89% MoM, with urban markets growing 4.25% MoM while rural markets declined 4.55% MoM due to delayed monsoon onset. Commercial Vehicles recorded 90,972 units, growing 16.88% YoY, with LCVs leading at 21.10% growth, followed by MCVs at 16.81% and HCVs at 8.26%. Passenger Vehicles stood out with 410,853 units, up 28.63% YoY and 2.05% MoM, showing stronger rural growth (+35.09% YoY) versus urban (+24.67% YoY). Three-Wheelers reached 120,889 units (+16.20% YoY) while Tractors recorded 100,818 units (+25.31% YoY, +21.33% MoM), marking the second-best June ever. Wheeled Construction Equipment declined 40.94% YoY to 5,244 units.

Fuel Type Milestones and Market Share

The report highlighted significant fuel transition milestones with PV alternative-fuel share (CNG + Hybrid + EV) crossing 40% for the first time at 40.35% (CNG 24.33%, Hybrid 8.27%, EV 7.75%). Two-Wheeler EV share entered double digits for the first time at 10.60%, up from 7.34% a year ago. Three-Wheeler EV penetration reached 64.08%. Total EV retails across categories reached 306,220 units, the highest for any month, with overall EV penetration at approximately 12.5%. PV inventory increased by 1 day over May-end to 32-34 days, remaining above FADA's recommended 21-day benchmark.

Year-to-Date Performance and OEM Market Share

FY'27 YTD (April-June 2026) total vehicle retails reached 7,843,259 units, up 15.35% YoY. Passenger Vehicles led with 22.64% growth to 1,255,933 units, followed by Tractors at 21.57% to 265,408 units, Two-Wheelers at 14.15% to 5,678,310 units, Commercial Vehicles at 13.59% to 280,495 units, and Three-Wheelers at 10.06% to 346,045 units. Wheeled Construction Equipment declined 21.37% to 17,068 units.

OEM market share data showed Hero MotoCorp leading Two-Wheelers with 25.82% share (472,144 units), followed by Honda at 24.76% (452,754 units) and TVS at 19.65% (359,243 units). In Passenger Vehicles, Maruti Suzuki maintained dominance with 40.85% share (167,834 units), followed by Tata Motors at 13.88% (57,009 units) and Mahindra at 13.17% (54,099 units). Bajaj Auto led Three-Wheelers with 33.82% share (40,883 units).

Near-Term and Medium-Term Outlook

For July 2026, 51.24% of dealers expect growth, 41.79% anticipate a flat market, and only 6.97% foresee decline, with overall sentiment described as "Cautiously Optimistic." Key drivers include monsoon catch-up, Kharif sowing progression, and normalized supplies following West Asia ceasefire and easing crude prices. For the July-August-September 2026 period, dealer confidence strengthens significantly with 66.17% expecting growth—the firmest reading in recent surveys—while only 3.98% expect de-growth. Notably, 38.31% of dealers have revised their FY'27 retail outlook upward versus 16.42% downward. The single biggest risk identified by dealers is monsoon shortfall/El Niño impact on rural demand, followed by price hikes affecting affordability and inventory pressure.

Survey Findings and Methodology

The data was collated as of July 4, 2026, in collaboration with the Ministry of Road Transport & Highways, gathered from 1,464 out of 1,467 RTOs. The survey showed dealer liquidity status as 46.27% good, 47.26% neutral, and 6.47% bad, while sentiment was 43.78% good, 48.76% neutral, and 7.46% bad. Data for 3W, CV, and Tractor categories were not available for Telangana for June 2026.