Passenger vehicle sales fall marginally in July amid sluggish demand

Domestic passenger vehicle sales declined marginally by 0.2% in July, amid persistently sluggish consumer demand.Companies are cautiously optimistic that sales will pick up during the coming festive season, starting with Onam later this month.

As many as 340,772 cars, sedans, and utility vehicles were dispatched from factories to dealerships last month, compared with 341,510 vehicles in July 2024, according to data released by industry body Society of Indian Automobile Manufacturers (SIAM).

Rajesh Menon, Director General, SIAM said, “All vehicle segments posted stable performance in July 2025, though overall sentiments in the passenger vehicles segment has remained subdued so far which de-grew marginally by (-) 0.2%, as compared to July of 2024.”

Domestic sales only. Source: SIAM

Three Wheelers posted their highest ever sales of July in 2025 of 69,403 units, with a growth of 17.5% as compared to July 2024. Two-wheeler sales grew by 8.7% to 1,567,267 units last month, as compared to 1,441,694 units in the year-ago period. While sales of scooters went up by 16.2% to 643,169 units in the month under review, those of motorcycles rose 4.7% to 890,107 units. Moped sales fell 9.5% to 33,991 units. “With the advent of the festive season beginning with Onam festivities in the latter part of August, the Indian auto industry remains cautiously optimistic for the demand momentum to pick up in the coming months”, Menon informed. Partho Banerjee, senior executive officer (marketing and sales) confirmed earlier this month while Maruti has seen an uptick in bookings ahead of the festive season, starting with Onam in Kerala, conversions are slow.

“Growth in rural markets which stood at about 10% last year, has now come down to 2-3%. In urban areas, with layoffs in the IT sector, buyers are cautious,” Banerjee said, adding, “We have, however, seen an increase in bookings which is a positive sign.”

“With the advent of the festive season, as things stabilise, we expect the demand momentum to pick up,” said Banerjee. Maruti Suzuki has so far recorded a 10% increase in bookings in Kerala.

Tarun Garg, chief operating officer, at Korean rival Hyundai too said, “While the overall auto industry has seen some softness in recent months, we remain optimistic with the onset of the festive season and are fully geared up with robust supply and product offerings.”