Car sales July 2025: Maruti, Hyundai, Tata lose market share, Mahindra gains

The urban contribution to PV sales was at 62% in July 2025.

Amid sluggish demand, particularly in urban parts of India, the passenger vehicle (PV) retails dropped nearly 1% year-on-year (y-o-y) in the country in July 2025, with carmakers like Maruti Suzuki India, Hyundai Motor India and Tata Motors taking a hit in their market share. However, Mahindra & Mahindra gained, driven by its robust SUV portfolio.

The retail sales of PVs declined 0.81% y-o-y at 3,28,613 units in July 2025 from 3,31,280 units in the year-ago month, according to official data from the industry body Federation of Automobile Dealers Associations (FADA).

While the urban areas contributed 62% to PV sales in July 2025, the rural areas had the remaining share at 38%. As per FADA, the Aashaada period and auspicious delivery days, combined with targeted schemes, new-model introductions and aggressive rural marketing, powered hinterland sales that picked up decisively towards the month-end.

"Urban demand, however, 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 industry body said.

Although Maruti continued its dominance, its sales and market share fell to 1,29,164 units and 39.31%, respectively, in July 2025 from 1,32,426 units and 39.97% in the same month last year.

While Hyundai's car retail fell to 43,009 units in July 2025 from 44,271 units in the year-ago month, its market share slipped to 13.09% from 13.36%.

Mahindra continued its bullish run as its sales rose to 42,207 units during the month under consideration from 39,823 units in the year-ago month, while the market share rose to 12.84% from 12.02%.

Tata again faced headwinds as its sales declined to 40,486 units in July 2025 from 44,621 units in July 2024, and the market share fell to 12.32% for the month from 13.47%.