The Indian auto retail market experienced a decline in July 2025 after a period of growth. FADA’s data reveals a decrease in total vehicle sales, with passenger vehicle sales marginally down year-on-year. Passenger vehicle retail sales were at 328,613 units, a decrease of 0.81% compared to July 2024. The two-wheeler segment, however, saw a significant drop. Two-wheeler sales declined to 13,55,504 units in July 2025, a 6.48% decrease compared to the same period last year, and a 6.28% MoM drop from June 2025. The decline was more pronounced in rural areas due to heavy rainfall and ongoing crop sowing, which disrupted movement and delayed purchasing decisions. Despite some resilience in urban demand, it was insufficient to offset the overall downturn. Dealerships anticipate a recovery in the two-wheeler segment in August, driven by the convergence of multiple festivals and an expected rebound in rural demand.
