Passenger Vehicle Sales Remain Sluggish in July; Carmakers Pin Hopes on Festive Season Revival

India's passenger vehicle (PV) industry continued to face sluggish demand in July 2025, with wholesale volumes inching up by just 1.16% year-on-year (YoY) to 3.48 lakh units, compared to 3.44 lakh units a year ago, according to industry estimates. Retail sales remained nearly flat at 3.28 lakh units, following a volume dip in June, signaling ongoing stress in consumer sentiment.

Maruti Suzuki's see flat sales

Among major players, Maruti Suzuki India Limited (MSIL), the country’s largest carmaker, reported largely flat wholesale dispatches at 1,37,776 units. While compact car sales offered some support, its Utility Vehicle segment witnessed a 6% decline. Maruti maintained a network stock of 36-37 days, calibrating dispatches to avoid excess inventory.

Speaking at a virtual press briefing, Partho Banerjee, Senior Executive Director (Marketing and Sales), MSIL, stated that the company is actively managing stock levels and addressing financing challenges, particularly after the cost increase due to the mandated inclusion of six airbags across models.

Banerjee also pointed out a sharp slowdown in rural demand growth to 2-3%, down from 10% a year ago, attributing the decline to affordability concerns and headwinds in the urban sector, including an IT slowdown and broader uncertainties. However, he remained optimistic about the upcoming festive season, noting early signs of booking growth in Kerala ahead of Onam.

Also Read: Car Buyers Slam The Brakes: PV Sales Dip 3.1% in May 2025, Says FADA | Republic World

Hyundai regains second spot

Hyundai Motor India Limited (HMIL) regained its position as the second-largest PV seller in July, recording 42,661 retail sales and surpassing Mahindra. However, its wholesale volumes dropped by 10.28% YoY to 43,973 units.

Hyundai COO Tarun Garg linked the subdued Q1 demand to “geopolitical factors” but said the company is hopeful of a rebound during the festive season. He added that production is expected to ramp up once the new Talegaon plant becomes operational in Q3 FY26.

Mahindra & Mahindra continued its strong performance, with PV sales rising nearly 20% YoY to 49,871 units. The growth was driven by sustained demand for SUVs like the XUV 3XO, Scorpio-N, and Thar Roxx, as per the company's claims.

M&M Automotive CEO Nalinikanth Gollagunta attributed the momentum to the launch of the new ‘REVX’ series and deliveries of Pack Two variants of the BE 6 and XEV 9e.

Tata Motors, meanwhile, reported an 11.63% YoY drop in PV wholesales to 39,521 units. However, its electric vehicle (EV) segment recorded a 42% surge in sales, reaching 7,124 units.

Toyota Kirloskar Motor (TKM) saw a 3% YoY increase in sales to 32,575 units, although its reported wholesale figure stood slightly lower at 29,159 units. The company's Vice President Varinder Wadhwa emphasized the company's commitment to customer-centric service and value-added offerings.

Kia India posted an 8% YoY rise in wholesale volumes, dispatching 22,135 units in July.

Business Outlook

Looking ahead, industry executives are hopeful that falling interest rates, easing inflation, a favorable monsoon, and recent tweaks in income tax brackets will help revive demand. Yet, affordability—especially for first-time hatchback buyers—remains a concern.

Most carmakers are now counting on the upcoming festive season, beginning with Onam and Ganesh Chaturthi, to drive a much-needed turnaround in sentiment and sales.