Automobile retail sales increased 9 per cent year-on-year in June quarter FY25 with all segments, barring tractors, reporting growth, dealers' body FADA said on Monday.
Overall retail sales rose to 61,91,225 units in the April-June period from 56,59,060 units in the same quarter of FY24.
Passenger vehicle retails increased 2.53 per cent to 9,20,047 units as against 8,97,361 units a year ago.
"Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth in the PV segment," FADA President Manish Raj Singhania said in a statement.
Dealers reported significant impacts from elections, extreme heat and market liquidity issues, he noted.
The extreme heat led to 18 per cent drop in showroom walk-ins in May, with inventory levels reaching an all-time high of 62-67 days by the end of June, Singhania said.
"Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment rema