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Auto Retail Sales Witness 4.31 Percent YoY Decline In July After Months Of Growth

India's auto retail dipped 4.31% YoY in July; tractors grew, but two-wheelers and PVs declined.

Auto Retail Sales Witness 4.31 Percent YoY Decline In July After Months Of Growth
Auto Retail Sales Witness 4.31 Percent YoY Decline

The Federation of Automobile Dealers Associations (FADA) today released the Vehicle Retail Data for July'25. The data reveals that after three consecutive months of growth, India's auto retail sector applied the brakes in July, with overall retail declining by 4.31 percent YoY. Segment-wise, 3W, Trac, and CV achieved growth of 0.83 percent, 10.96 percent, and 0.23 percent YoY, respectively, whereas 2W, PV, and CE contracted by 6.48%, 0.81 percent, and 33.28 percent YoY.

Overall, most of the vehicle categories witnessed mixed results in the month; it was the two-wheeler and passenger vehicle categories that suffered a tough blow during the period. According to the data, July 2025 saw sales of a total of 13,55,504 units of two-wheelers, while it managed to sell 14,46,387 units in July 2024, resulting in a 6.28 percent MoM decline.

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CV posted a modest 0.23% YoY increase and a 4.19% MoM uptick, 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 financing disbursements, prompting many buyers to defer purchases to the post-monsoon period.

Talking about the other segments, the three-wheeler segment managed to notch sales of 1,11,426 units in July 2025. Meanwhile, it sold a total of 1,00,625 units, resulting in a 10.73 percent MoM growth and 0.83 percent YoY growth. Also, the Tractor segment saw a massive growth with sales of 88,722 units in July, contributing to the 14.90 percent MoM and 10.96 percent YoY growth.

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