Mixed Fortunes for Auto Industry in June 2025
The automobile sector in the country braces for uneven performance in June 2025, with two-wheelers and tractors poised for slight growth while commercial and passenger vehicles face declines. Reports cite conversion challenges, a stronger used car market, and material supply issues affecting segments like electric vehicles.

- Country:
- India
The automobile industry is set to face mixed results in June 2025, according to Yes Securities. Two-wheelers and tractors are predicted to achieve flat to mid-single digit growth, whereas commercial and passenger vehicles may see mid-high single-digit declines. Factors such as weak conversions and finance issues are impacting performance.
Yes Securities highlights a year-on-year dip in retail trends for June 2025. Medium and heavy commercial vehicles struggle due to poor fleet sentiment, and bus demand experiences a seasonal slump. Conversely, intermediate commercial vehicles see a boost in CNG vehicle demand, with some pre-buying activity aiding May and June volumes despite a weak inquiry pipeline.
Focus shifts to reducing inventories from 30-35 days in May to 15-20 days by June's end. In two-wheelers, sales remain flat to mid-single digits, supported by healthy performances in the West and North regions. However, electric two-wheelers face rare earth material shortages. Meanwhile, TVS is prepping for new launches, while the passenger vehicle segment may experience high single-digit decline, with consistent discount trends. Tractors are maintaining stable inventory and discount levels, with a moderate growth outlook adjusted for seasonality.
(With inputs from agencies.)