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 2025 | July 2024 | % change |
| Maruti Suzuki | 1,37,776 | 1,37,463 | NA |
| M&M | 49,871 | 41623 | 20 |
| Hyundai | 43,973 | 49,013 | -10 |
| Tata Motors | 39,521 | 44,725 | -12 |
| Toyota Kirloskar | 32, 575 | 31,656 | 3 |
| Kia | 22,135 | 20,507 | 8 |
| JSW MG | 6678 | 4,575 | 46 |
| Honda Cars | 4,050 | 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 2025 | July 2024 | % change |
| HMSI | 4,66,331 | 4,39,118 | 6 |
| Hero MotoCorp | 4,12,397 | 3,47,535 | 19 |
| TVS Motor | 3,08,720 | 2,54,250 | 21 |
| Bajaj Auto | 1,39,279 | 1,68,847 | -18 |
| Suzuki Motorcycles | 96,029 | 1,00,602 | -4.5 |
| Royal Enfield | 76,254 | 61,208 | 25 |
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.
