Retail sales of passenger vehicles (PVs) declined nearly 1% year-on-year in July 2025 amid sluggish demand, especially in India's urban areas, leading to a decline in market share for carmakers such as Maruti Suzuki India, Hyundai Motor India and Tata Motors.
Retail sales of passenger vehicles (PVs) declined nearly 1% year-on-year in July 2025 amid sluggish demand, especially in India's urban areas, leading to a decline in market share for carmakers such as Maruti Suzuki India, Hyundai Motor India and Tata Motors. However, Mahindra & Mahindra benefited due to its strong SUV portfolio.
According to official data from the Federation of Automobile Dealers Associations (FADA), retail sales of passenger vehicles declined by 0.81% year-on-year to 3,28,613 units in July 2025 as against 3,31,280 units in the same month last year.
Urban areas contributed 62% of passenger vehicle sales in July 2025, while rural areas contributed 38%. According to FADA, sales in rural areas picked up significantly towards the end of the month due to the month of Aashadha and some auspicious delivery days, launch of new vehicles and special marketing in villages.
Companies will have to give discounts carefully
The industry body said that demand in urban areas is still weak as customers are making fewer inquiries and their interest in buying is also low. Currently, dealers have about 55 days of stock. In such a situation, to maintain sales during the festive season, companies will have to give discounts carefully, make finance facilities easier and increase promotion in urban areas.
Car sales declined in July 2025
Although Maruti has maintained its hold, its sales have declined to 1,29,164 units and market share of 39.31% in July 2025 as against 1,32,426 units and 39.97% in July 2024.
At the same time, Hyundai's car sales also declined to 43,009 units in July 2025 from 44,271 units in the same month a year ago. Along with this, the company's market share also declined from 13.36% to 13.09%.
Mahindra continues strong car sales growth
Mahindra continued its momentum and its sales increased to 42,207 units in July 2025 from 39,823 units in the same month a year ago. With this, the company's market share also increased to 12.84%, which was 12.02% in July 2024.
At the same time, Tata Motors has been facing continuous setbacks. In July 2025, the company's sales fell to 40,486 units, while this figure was 44,621 units in the same month last year. Along with this, the market share also came down to 12.32%, which was earlier 13.47%.
PC:MoneyControl
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