Maruti Suzuki XL6 gets 6 airbags as standard
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Hindustan Times
2 hours ago
- Hindustan Times
Car sales in July show mixed trends as rural demand slows, festive hopes rise
Indian passenger vehicle market posted a mixed July 2025 with some companies posting marginal or negative growth in signs of weakening domestic demand, a PTI report said. 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. 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. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
Hindustan Times
a day ago
- Hindustan Times
Maruti Suzuki sees compact car uptick in July amid structural stress in entry segment
In a surprising turn of events, Maruti Suzuki , the leading carmaker in India, after a very long period has reported an uptick growth for its compact car segment. The carmaker has long been advocating the resurgence in the small car segment for the growth of the Indian passenger vehicle market. Maruti Suzuki saw a 5.6 per cent rise in compact car sales in July 2025, led by Dzire and WagonR, even as entry-level and SUV segments showed weakness. With exports growing and festive demand ahead, the company remains cautious in its FY26 outlook. In the month of July 2025, Maruti Suzuki reported total retail sales of 72,489 units for its compact car segment as compared to 68,642 units it retailed for the same month last year, marking a growth of 5.6 per cent. In contrast, the utility vehicle segment saw a decline of 6.2 per cent in the same month—from 56,302 units in July 2024 to 52,773 units in July 2025. In fact, out of the top three cars sold by Maruti Suzuki in July, two were from the compact car segment—the Dzire with 20,895 units topped the charts, while the WagonR, with 14,700 units, secured third spot. Partho Banerjee, Senior Executive Officer, Marketing and Sales, attributed part of the compact segment's resilience to the renewed demand for the WagonR, which he said is 'back on track." According to him, bookings for the model have picked up, reaffirming its status as a trusted city commuter. However, not everything is as buoyant in the small car universe. The entry-level conundrum The mini car segment, once the backbone of India's motorisation journey, continues to show signs of stress. Maruti's Alto K10 and S-Presso, once the poster children of affordable mobility, recorded combined sales of just 6,822 units in July—a sharp 31.5 per cent decline year-on-year. The reason is not difficult to decipher. Despite its past history of affordability, this segment has been hit hard by disproportionate exposure to price inflation, regulatory expenses (safety mandates), and lack of wage growth in its fundamental rural and small-town consumer base. Also Read : Maruti calls for small car revival to drive auto growth, banks on exports for near-term gains Financing, particularly to first-time buyers, still remains an impediment, added to by tighter norms post-pandemic and NBFC risk aversion. As Banerjee has pointed out, there is demand on paper—enquiries and visits are intact—but the conversion is low-key because of the initial cost burden. 'The entry segment needs structural support, possibly in the form of GST rationalisation," he reiterated. Until then, this segment may continue to wobble, despite its strategic importance to market expansion. Resilience in compact car segment The compact car segment, on the other hand, appears to be benefiting from a more balanced equation. Products like the Dzire and WagonR offer a blend of affordability and features, especially with CNG variants and automated manual transmissions (AGS) that appeal to cost- and comfort-conscious buyers alike. In fact, CNG models constituted about 40 per cent of the total domestic sales for the company in July 2025 and 37.5 per cent in the first quarter of financial year 2025-26. Interestingly, limited edition variants launched in the past quarter helped infuse freshness into long-standing models. 'When the market is muted, it's important for the leader to spark excitement," said Banerjee. These variants, paired with pre-festive schemes, have helped the Dzire and WagonR maintain relevance even in a market weighed down by cautious sentiment. Also read: Maruti Suzuki Alto K10, Celerio, S-Presso Dream Edition launched at ₹4.99 Lakh Bookings for these models are robust, but as Banerjee noted, there's still an intervening gap between reservations and sales — all because of reluctance among metro consumers and ongoing credit woes among first-time buyers. The SUV plateau and the Eeco dip The decline in UV sales is not necessarily a condemnation of demand but more an instance of temporary market fatigue and internal readjustment. While models like Brezza and Fronx continue to do well, Banerjee acknowledged that the SUV market may have reached a short-term plateau. 'There were over ten SUV launches last year alone, and now the base is expanding. Growth will continue, but it's more about resizing than runaway demand," he said. The Eeco, once a reliable volume generator for Maruti, is also showing signs of strain. A 6 per cent price hike following the inclusion of six airbags has created financing hurdles for buyers. 'The interest is there, but conversions are delayed. We're working with NBFCs to bridge that gap," Banerjee noted. Eyes on the festive quarter Looking ahead, Maruti expects the compact segment to continue offering steady momentum, particularly during the festive season. With Onam in Kerala marking the start of the festive calendar, Maruti Suzuki is cautiously optimistic. Bookings in Kerala have already grown by 10 per cent year-on-year, and the company expects this momentum to carry into Ganesh Chaturthi and Navratri. While the company isn't pushing dispatches merely to boost wholesales, it is preparing to ramp up production of high-demand CNG variants and limited editions to match anticipated demand. 'We're calibrating stock carefully — volume will follow, but we're not chasing it blindly," said Banerjee. But the outlook is not without caveats. 'Entry-level remains under stress," admitted Banerjee. 'And while there's optimism, we need to watch financing behaviour closely." Maruti is also working with NBFCs to bridge financing gaps in smaller towns, but the impact may take time to reflect in wholesale figures. Exports: The silent buffer With domestic demand showing visible fatigue, Maruti is turning increasingly to exports for growth. The company has set an ambitious target of 400,000 export units in FY26, up from 283,000 units in FY25. What's more telling is that the company now accounts for 43 per cent of India's passenger vehicle exports, with plans to push that share closer to 50 per cent. Also Read : Maruti Suzuki India eyes 4 lakh exports in FY26 to counter domestic market slowdown Africa, Latin America, and ASEAN continue to be focus geographies, but a surprising bright spot has been Japan—Maruti's second-largest export market, thanks largely to the Jimny and Fronx. These models, engineered in India, are finding takers even in quality-conscious mature markets. As Partho Banerjee had earlier remarked, 'Exports are helping us balance out domestic fluctuations. In a way, they've become our second growth engine." Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
Time of India
a day ago
- Time of India
July auto despatches: PVs in lower gear, two-wheelers hold firm
New Delhi: Passenger vehicle wholesales remained sluggish in July 2025 as OEM despatches to dealerships reflected weak market sentiment and lack of fresh demand. While most carmakers reported flat or declining wholesales, the industry is now pinning hopes on the upcoming festive season to revive momentum. Industry estimates indicate OEM despatches stood at 3.48 lakh units in July, marginally up from 3.44 lakh units in the same month last year, reflecting flat year-on-year (YoY) growth. Mahindra & Mahindra resisted the trend with continued growth and No 2 spot, supported by its relatively fresh SUV portfolio. In contrast, Hyundai and Tata Motors registered double-digit declines, while Maruti Suzuki's volumes stayed largely flat year-on-year. Partho Banerjee, Senior Executive Officer- Marketing and Sales at Maruti Suzuki, said the rural market momentum has tapered off significantly. 'Last year, rural markets were growing at around 10 per cent, but this year it's down to 2-3 per cent,' he noted. In urban markets, buyer sentiment remains cautious, particularly due to layoffs in the IT sector. Growth during the month was largely led by the compact segment, comprising models such as the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR. He added that the company's current network stock stands at 36–37 days, with despatches being calibrated accordingly to manage inventory levels efficiently. Pinning hopes on the upcoming festivities, Banerjee said that if Onam performs well, followed by Ganpati and Navratra, supported by a good monsoon and a possible MSP hike, the festive season could help with sales. He cited early positive signs, including a 10 per cent year-on-year growth in bookings in Kerala, which is a key Onam market. Unsoo Kim, Managing Director of Hyundai Motor India, recently acknowledged that the ongoing softness in demand continues to weigh on industry sentiment. He attributed the sluggishness to persistent macroeconomic challenges, further compounded by global uncertainties. Notably, while Mahindra maintained its lead over Hyundai and Tata in wholesales, Vahan data shows Hyundai climbed to the second spot in July retail sales for the first time this fiscal. Domestic Despatches (in units)July 2025July 2024% changeMaruti Suzuki1,37,7761,37,463NAM&M49,8714162320Hyundai43,97349,013-10Tata Motors39,52144,725-12Toyota Kirloskar32, 57531,6563Kia22,135 20,507 8JSW MG6678 4,575 46Honda Cars4,050 4,624-12 Kunal Behl, Vice President- Marketing & Sales at Honda Cars India, said, 'Demand remained subdued in July 2025, and we accordingly aligned our dispatches to maintain optimal inventory levels across dealerships.' He added that Honda will roll out attractive offers to drive new car sales in August. Two wheelers Despatches in the two-wheeler segment remained largely healthy in July, with three of the top manufacturers reporting year-on-year growth. Honda Motorcycle & Scooter India (HMSI) emerged as the top performer, surpassing Hero MotoCorp by about 54,000 units, claiming the number one spot in the market for the month. Riding the premium wave, Royal Enfield posted a robust 25 per cent year-on-year growth in July. 'Our new range of motorcycles on the Sherpa 450 platform, and the new refreshed Hunter 350 are seeing excellent reception both in India and global markets,' B Govindarajan, Managing Director of Eicher Motors, and Chief Executive Officer at Royal Enfield, said. The company is aiming to 'further consolidate the leadership in the mid-size motorcycle segment.' Domestic Despatches (in units)July 2025July 2024% changeHMSI4,66,3314,39,1186Hero MotoCorp4,12,397 3,47,535 19TVS Motor3,08,720 2,54,250 21Bajaj Auto1,39,2791,68,847-18Suzuki Motorcycles96,029 1,00,602 -4.5Royal Enfield76,25461,20825 A recent Deloitte report highlighted a fragmentation in the two-wheeler market across income groups and geographies. While core rural segments remain under stress, demand in urban and premium categories continues to hold firm. 'EV adoption is progressing selectively, driven by states with strong consumer interest, supportive infrastructure, and consistent policy execution,' the report noted. It added that there seems a structural churn where value-conscious buyers are holding back, while aspiration- and sustainability-driven purchases are gaining momentum. Echoing similar sentiments, Motilal Oswal has projected a cautious outlook for FY26 across most auto segments, with growth estimates remaining in the low- to mid-single digits. The brokerage also flagged a downside risk to its two-wheeler forecasts if demand fails to revive in the coming quarters.
