Auto retail sales skid 4.3% after three months in July with 19,64,213 units

Passenger vehicle (PV) sales were down by 0.81 per cent year-on-year at 3,28,613 units. PV sales were reported at 3,31,280 units in the same time period last year.

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India’s automobile retail sales fell by 4.31 per cent year-on-year in July 2025, marking the end of a three-month growth run, as per data from the Federation of Automobile Dealers Associations (FADA). Total vehicle registrations stood at 19,64,213 units against 20,52,759 units sold in July 2025.“After three consecutive months of growth, India’s auto retail sector applied the brakes in July, with overall retails declining by 4.31 per cent YoY. This pullback largely stems from a high-base effect in July 2024,” said C S Vigneshwar, President, FADA.

Two-wheeler segment sales

The two-wheeler segment saw a 6.48 per cent year-on-year drop to 13,55,504 units against 14,49,487 units sold in July 2025, reflecting both the high base and current rural market constraints.Heavy monsoon rains and ongoing crop-sowing activity weighed on rural footfalls, leading to a slowdown in purchases. However, dealers report that many buyers are deferring decisions to August, aligning with the onset of the festive season, FADA report added.

Commercial vehicle sales

Commercial vehicle segment grew to 76,439 units in July with a reported rise of 0.23 per cent year-on-year when compared with 76,261 units in the same time last year.Urban demand was buoyed by the introduction of new models, institutional buying, and school-bus procurement schemes. In contrast, rural demand remained uneven, hampered by weather-related disruptions, logistical challenges, and delays in financier disbursements, stated the report.

PV sales contract slightly

Passenger vehicle (PV) sales were down by 0.81 per cent year-on-year at 3,28,613 units. PV sales were reported at 3,31,280 units in the same time period last year.The sequential growth was driven by rural demand resilience towards the end of the month, supported by auspicious delivery days during the Aashaada period and new model launches. In contrast, urban enquiries remained sluggish, with potential buyers awaiting festive discounts.

Near-Term Outlook

Favourable monsoon conditions and the upcoming festive season are expected to support a recovery in demand. However, uncertainties around export tariffs and the risk of localised flooding warrant cautious monitoring.Targeted promotional strategies, collaborative financing initiatives, and a balanced approach to rural and urban engagement will be key to unlocking latent demand and sustaining retail momentum.

(Source: FADA)

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