In July 2025 Car Sales , India’s passenger vehicle market dipped by nearly 1% YoY. While Maruti, Hyundai, and Tata lost ground, Mahindra gained traction with strong SUV.
India’s Car Sales Market Shows Signs of Strain as Big Players Lose Ground
India’s automobile industry faced a slight setback in July 2025, with overall passenger vehicle (PV) sales registering a year-on-year (YoY) decline. According to the latest data released by the Federation of Automobile Dealers Associations (FADA), total PV retail sales stood at 3,28,613 units, down from 3,31,280 units in July 2024 — a drop of 0.81%.
The slowdown is primarily attributed to weak urban demand, fewer enquiries, and a generally cautious consumer sentiment across metro cities. While urban areas accounted for 62% of total sales, rural India held the remaining 38%, showing stronger momentum toward the end of the month thanks to cultural and seasonal factors.
Car Sales : Mahindra Gains While Maruti, Hyundai, Tata Struggle
Among the top automakers, Mahindra & Mahindra emerged as the surprise gainer, increasing both its sales volume and market share. In contrast, industry leaders like Maruti Suzuki, Hyundai, and Tata Motors reported a decline in their performance.
Let’s look at the numbers in detail:
| Carmaker | July 2025 Sales | July 2025 Market Share | July 2024 Sales | July 2024 Market Share |
|---|---|---|---|---|
| Maruti Suzuki | 1,29,164 units | 39.31% | 1,32,426 units | 39.97% |
| Hyundai Motors | 43,009 units | 13.09% | 44,271 units | 13.36% |
| Mahindra & Mahindra | 42,207 units | 12.84% | 39,823 units | 12.02% |
| Tata Motors | 40,486 units | 12.32% | 44,621 units | 13.47% |
| Others | 73,747 units | 22.44% | 70,139 units | 21.17% |
| Total | 3,28,613 units | 100% | 3,31,280 units | 100% |
Car Sales : Maruti Suzuki: Still Leading, But Marginally Weaker
Despite being the market leader, Maruti Suzuki India saw a decline in both sales and market share in July 2025. The company sold 1,29,164 units, compared to 1,32,426 units in July 2024, with its market share slipping from 39.97% to 39.31%.
While Maruti continues to dominate due to its wide product portfolio and extensive dealership network, the growing competition in the SUV space, where Maruti is relatively weaker, could be contributing to this dip.
Car Sales : Hyundai Motors: Urban Slowdown Impacts Sales
Hyundai Motor India, the second-largest carmaker, also experienced a slight fall in its retail performance. Sales dropped to 43,009 units in July 2025 from 44,271 units in July 2024. Consequently, its market share fell to 13.09%, down from 13.36%.
Hyundai’s sedan and compact SUV offerings are strong, but the company has yet to see a significant push in the rural market — something competitors like Mahindra are leveraging well.
Car Sales : Mahindra & Mahindra: SUVs Drive Success Story
Bucking the overall market trend, Mahindra & Mahindra posted a strong performance in July 2025. With sales rising to 42,207 units (up from 39,823 units a year ago), Mahindra’s market share improved from 12.02% to 12.84%.
The brand’s success is largely credited to its robust SUV lineup, including models like Scorpio-N, XUV700, and Thar, which are resonating well with both urban adventure-seekers and rural consumers alike.
Additionally, Mahindra has intensified its rural marketing strategies and is seeing traction from tier-2 and tier-3 towns where demand surged during the latter half of July.
Car Sales : Tata Motors: A Tough Month
Tata Motors faced a noticeable decline in both sales volume and market share. Retail numbers fell to 40,486 units from 44,621 units in July 2024, while market share dropped to 12.32% from 13.47%.
While Tata has made strides in electric vehicles (EVs) and safety ratings, its overall portfolio didn’t perform as strongly this month. Industry experts believe Tata needs to ramp up its promotions and possibly introduce new models or facelift versions to attract more buyers during the festive season.
Car Sales Urban vs Rural: A Growing Contrast
One of the key highlights of the July 2025 data is the stark contrast between urban and rural demand. While urban areas contributed 62% to PV sales, there was a noticeable lack of excitement among city buyers.
FADA attributed this to:
- Low footfall and enquiries at urban dealerships
- Uncertain economic conditions and rising living costs
- Postponement of discretionary spending
In contrast, rural areas saw an uptick, especially toward the end of the month, due to:
- The Aashaada period concluding, making way for more auspicious vehicle deliveries
- Targeted financing schemes and government incentives
- Aggressive rural marketing and newly launched models
Car Sales Inventory and Festive Preparedness
As per FADA, the current inventory levels remain stable at around 55 days, which is manageable for now. However, dealerships are being advised to practice calibrated discounting, and carmakers are focusing on:
- Streamlined financing options
- Improved urban outreach
- Pre-festive marketing campaigns
With the festive season approaching, these strategies are expected to help revive urban interest and stabilize the market.
Car Sales Outlook: What Lies Ahead?
While the overall dip of 0.81% may seem marginal, it reflects a shift in consumer behavior. Carmakers will need to:
- Continue tapping into rural demand
- Introduce more value-packed SUVs and compact models
- Provide better deals and financing to attract urban buyers
Mahindra’s growth story in July 2025 highlights that product innovation, rural focus, and brand trust can turn market challenges into opportunities.
Car Sales : Key Takeaways
- Passenger vehicle retail sales dropped by 0.81% YoY in July 2025.
- Maruti, Hyundai, and Tata saw a decline in both sales and market share.
- Mahindra gained significant ground, thanks to its SUV lineup.
- Urban demand was weak, while rural sales picked up due to cultural and economic factors.
- Inventory stands at 55 days, with dealers hoping for a better festive season.
The Indian car market in July 2025 showed mixed signals. While top brands witnessed slowdowns, others like Mahindra capitalized on rural strength and targeted marketing. As the festive season draws near, it remains to be seen whether urban consumers will return in full force or if rural India will continue to drive the wheel forward.