India’s Light Vehicle (LV) wholesale figures for June totaled approximately 365k units, representing an 8% month-on-month (MoM) decrease and a 6% year-on-year (YoY) decline.
Passenger Vehicle (PV) sales accounted for 313k units, indicating reductions of 8% MoM and 6% YoY. At the same time, demand for Light Commercial Vehicles (LCVs) with a gross vehicle weight of up to 6T reached 52k units, marking decreases of 5% MoM and 4% YoY.
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The PV segment, in particular, saw diminished demand from urban consumers. Factors such as the monsoon season and more stringent lending practices contributed to the overall market contraction.
Retail sales of PVs and LCVs in June saw a marginal 1% MoM decrease to 342k units, compared to 347k units in May and 397k units in April, according to data from the Federation of Automobile Dealers Associations (FADA). PV retail sales dipped by a slight 1% MoM, while LCV sales remained unchanged.
“Heavy rains and tight market liquidity impacted foot traffic and conversion rates, despite elevated incentive schemes and fresh bookings providing selective support,” stated FADA President C.S. Vigneshwar, commenting on PV sales.
As a result, PV inventory levels stood at approximately 55 days at the end of June, an increase from 52-53 days in May and 50 days in April.
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By GlobalDataFor H1 2025 as a whole, LV sales approached 2.5 million units, reflecting a modest increase of 1% YoY. This figure included 2.1 million PVs (+2% YoY) and 344k LCVs (-2% YoY).
Our partner, Oxford Economics (OE), has revised India’s economic forecast upward by 0.1 pp, with GDP growth now projected at 6.5% for the fiscal year 2024-25. This projection is bolstered by a robust 7.4% YoY increase in Q1. While public capital expenditure has driven initial growth, private investment and household consumption are exhibiting signs of softening, particularly in rural areas, despite favorable conditions from an early monsoon and declining food and energy prices.
Furthermore, the Reserve Bank of India has enacted a series of rate cuts, including a notable 50 bps reduction in June, which brought the repo rate down to 5.5%. These measures aim to stimulate investment amid ongoing policy uncertainty and subdued external demand.
We have slightly raised our PV outlook for 2025 but have lowered our projections for LCVs for the 2025-27 period.
Nonetheless, we maintain our expectation that LV sales will surpass 5 million units in 2025, marking a 2% YoY expansion. Looking ahead, we anticipate that volumes will increase to 6.8 million units by 2032.
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
