India Car Sales Jump 29% In June, Shift Seen Towards Alternative Fuels
India’s retail passenger vehicle sales rose sharply in June, helped by stronger consumer demand and a shift towards alternative-fuel vehicles after fuel prices increased in May.
India Car Sales Jump In June
Passenger vehicle retail sales increased 28.6% year-on-year in June to 4,10,853 units, according to data from the Federation of Automobile Dealers Associations.
Overall vehicle retail sales also rose 21.8% to nearly 26 lakh units, marking a strong month for India’s automobile market. The growth covered multiple segments, including two-wheelers, passenger vehicles and commercial vehicles.
Dealers said improved supply, better demand and changing fuel preferences supported the increase in showroom sales.
Alternative Fuel Vehicles Hit Record Share
Alternative-fuel vehicles, including CNG, hybrid and electric models, accounted for 40.35% of passenger vehicle retail sales in June. This was higher than nearly 38% in May and marked a record share for the segment.
CNG vehicles led the shift with a 24.3% share of passenger vehicle sales, followed by hybrids at 8.3% and electric vehicles at 7.8%.
Electric two-wheelers also gained momentum, reaching 10.6% of two-wheeler sales for the first time. The trend shows buyers are increasingly considering lower running costs while choosing new vehicles.
Fuel Price Hikes Drive Buyer Shift
Fuel price increases after the Iran conflict pushed many consumers towards electric, hybrid and CNG models. Maruti Suzuki reportedly saw a 40% rise in CNG vehicle bookings after the price hikes.
FADA president C.S. Vigneshwar said immediate disruption linked to the conflict had eased, but full normalisation could take several quarters and may still involve cost pressures.
The June data signals a wider shift in India’s auto market, where fuel efficiency and ownership cost are becoming key purchase factors.
