Our Bureau
New Delhi
India’s passenger vehicle retail sales recorded strong June performance, rising 28.63 per cent year-on-year to 410,853 units, as demand for electric vehicles (EVs), hybrids and CNG-powered cars pushed alternative-fuel vehicles to an all-time market share of 40.4 per cent, according to data released by the Federation of Automobile Dealers Associations (FADA).
The sharp rise was driven by robust consumer demand, improved affordability and a growing preference for vehicles with lower running costs amid elevated petrol and diesel prices. CNG cars accounted for 24.3 per cent of total passenger vehicle sales, followed by hybrids at 8.3 per cent and EVs at 7.8 per cent, signalling a major shift in India’s automotive market.
FADA President C.S. Vigneshwar said the industry had witnessed unprecedented momentum across passenger vehicles, although it remains uncertain whether the surge represents a sustained trend or a temporary response to changing fuel economics. He noted that continued demand, stable financing conditions and improving rural markets would determine whether growth can be maintained in the coming months.
The broader automobile industry also posted record numbers, with total retail vehicle sales across all categories climbing 21.8 per cent to about 2.6 million units.
Industry analysts attributed the strong June performance to favourable financing conditions, tax relief measures, resilient rural demand and a wider range of alternative-fuel models. However, experts cautioned that geopolitical uncertainties, supply-chain challenges and fluctuations in fuel prices could influence demand in the second half of the year, even as automakers continue expanding their electric and hybrid portfolios.
