July 2025 Auto Sales Show Decline in Indian Market, Two-Wheelers Hit Hardest

After a period of growth, the Indian automotive retail sector faced a decline in July 2025. The Federation of Automobile Dealers Associations (FADA) reported a 4.31% year-on-year decrease in overall vehicle sales and a 1.98% decrease month-on-month. Passenger vehicle sales in July 2025 were at 328,613 units, a 0.81% decrease compared to July 2024. The two-wheeler segment experienced a significant drop, with sales plummeting to 13,55,504 units, a 6.48% year-on-year decrease and a 6.28% decrease from June 2025. This decline was primarily felt in rural areas due to heavy rainfall and agricultural activities, which hindered movement and dampened purchasing. However, the commercial vehicle segment showed relative stability with a slight 0.23% year-on-year increase, and a 4.19% improvement month-on-month from June. Dealerships expect a boost in the two-wheeler segment in August due to festivals and expected rural demand.