Overall all auto mobile retail sales in July 2025 fell 4.31% from the same period last year indicating the sluggishness in the market.
As per data released by Federation of Automobile Dealers Association (FADA), while two wheelers (2W) category fell 6.48% year on year (YoY), passenger vehicles (PV) and construction equipment (CE) segments fell 0.81% and 33.28% respectively.
On the other hand, three wheelers (3W), tractors and commercial vehicles (CV) grew 0.83%, 10.96% and 0.23% YoY respectively.
FADA President C.S. Vigneshwar said, “After three consecutive months of growth, India’s auto retail sector applied the brakes in July, with overall retails declining by 4.31% YoY.”
“This pullback largely stems from a high-base effect in July 2024, when an extreme heat wave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month,” he said.
In the 2W space, July saw a decline as crop-sowing activities and prolonged heavy rains dampened rural footfalls more sharply than urban demand,” he said.
“Dealers are nevertheless confident of a post-monsoon uptick, with several purchase decisions deferred to August ahead of the festive season — making strategic stock alignment and focused rural-urban engagement imperative for reviving momentum,” he added.
The PV segment contracted due to Aashaada period and despite rural markets doing well. Urban demand remained muted due to low enquiry and restrained customer sentiment.
“With inventory levels steady at around 55 days, calibrated discounting, streamlined finance facilitation and intensified urban outreach will be crucial for sustaining festive-season growth,” the FADA president said.
CV posted a modest increase in sales led by urban momentum. Dealers cited new-model launches, aggressive marketing support, bulk institutional orders and timely stock availability as key drivers, alongside targeted schemes that bolstered school-bus volumes.
In contrast, rural haulage demand remained fragmented amid heavy rainfall, seasonal softness in cement, coal and construction logistics, and slower financier disbursements, prompting many buyers to defer purchases to the post-monsoon period, he said.
Finally, the tractors segment delivered robust performance due to timely release of enhanced agricultural subsidies and favourable monsoon rains which spurred a marked increase in purchase intent, he added.
Published – August 07, 2025 09:11 pm IST
