Car sales in July show mixed trends as rural demand slows, festive hopes rise
While Maruti Suzuki India (MSI) posted an increase in dispatches, its competitors like Tata Motors and Hyundai Motor India posted year-on-year declines. Meanwhile, Mahindra & Mahindra and Kia India posted wholesales growth, defying the overall trend.
Maruti sees flat growth
Maruti Suzuki dispatched 1,37,776 passenger cars during July 2025, slightly higher from 1,37,463 units in July last year While compact cars such as the Baleno, Swift, Dzire, and Ignis saw a rise in volumes to 65,667 units, mini cars like the Alto and S-Presso continued to struggle, with sales dropping to 6,822 units from 9,960 last July.
A more notable decline was seen in the utility vehicle segment — including models like the Grand Vitara, Ertiga, Brezza, and XL6 — which fell 6 per cent year-on-year to 52,773 units. MSI's Senior Executive Director, Partho Banerjee, attributed part of the sales pressure to cost increases due to mandatory six airbags, adding that the company is working with financiers to ease vehicle affordability concerns.
Also Read : Maruti Suzuki sees compact car uptick in July amid structural stress in entry segment
He also noted a slowdown in rural demand growth, now pegged at just 2–3 per cent, compared to 10 per cent last year. Urban areas, Banerjee said, are experiencing uncertainty, particularly from a muted IT sector and broader economic hesitancy.
Tata, Hyundai face volume pressure
Tata Motors' domestic passenger vehicle dispatches fell 12 per cent to 39,521 units, while Hyundai's numbers dropped 10 per cent to 43,973 units. Hyundai attributed the fall to market softness overall but was hopeful for the festive season ahead.
Mahindra and Kia defy slowdown
Conversely, Mahindra & Mahindra recorded a 20 per cent year-over-year rise in sales of utility vehicles at 49,871 units. The company's recent model refreshes and variant additions under the XUV 3XO and electric models are cited as reasons.
Kia India also reported a growth of 8 per cent, selling 22,135 units in July. The company said its consistent performance reflects growing trust in the brand despite a challenging environment.
Also Read : Indian auto sector faces tough Q1 FY26 as costs climb and exports slow: Report
Toyota posts mild growth; two-wheeler sales paint varied picture
Toyota Kirloskar Motor reported a modest 3 per cent growth, selling 32,575 units in July, with 29,159 units going to the domestic market. The brand noted stable demand across segments.
In two-wheelers, the performance was equally varied. Royal Enfield saw strong domestic growth of 25 per cent, with 76,254 units sold, while Bajaj Auto's sales slipped 13 per cent to 1,83,143 units.
Outlook hinges on festive season, rural revival
With the festive season in sight, automakers are banking on the same for better days. Early booking trends in markets such as Kerala and prospects of a good monsoon and increased MSPs (Minimum Support Prices) are set to boost recovery. But high vehicle prices and uncertainty in the economy will keep its shadow over near-term demand, especially in entry-level and rural markets.
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