June 2025 auto sales dip amidst subdued demand; Maruti, Hyundai, Tata post sharp decline
June domestic vehicle sales showed a mix trend with Maruti Suzuki, Tata Motors and Hyundai witnessing sharp decline and Mahindra and Toyota bucking the trend amid continued inventory build-up.
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India’s passenger vehicle market stumbled in June 2025, with three of the country's biggest carmakers—Maruti Suzuki, Hyundai Motor India, and Tata Motors— reporting double-digit year-on-year declines in domestic wholesale sales. The sharp downturn reflects a mix of subdued urban demand, high dealer inventory, and price sensitivity in the small car segment, which continues to be under stress due to regulatory cost pressures.
Maruti Suzuki, India’s largest carmaker, saw a 13% drop in domestic passenger vehicle dispatches, delivering 1,18,906 units compared to 1,37,160 units last year. Its mini-segment cars, Alto and S-Presso, fell to 6,414 units from 9,395, while compact cars like Baleno, Celerio, Dzire, Ignis, Swift, and WagonR dropped to 54,177 units from 64,049. Overall, the company reported a total sales of 167,993 units in June 2025, reflecting a year-on-year decline from 179,228 units in June 2024.
Utility vehicles, including Grand Vitara, Brezza, Ertiga, XL6, and Jimny, also declined to 47,947 units from 52,373. Rahul Bharti, MSI Senior Executive Officer, attributed the slowdown to an affordability issue in the small car segment, noting that passenger vehicle sales are nearly flat despite 6.5% GDP growth.
He said, "The slowdown in PV sales is largely due to a sharp decline in the smaller segment cars. Historically, PV sales used to grow at 1.5 times the GDP growth. But now, even after 6.5% GDP growth, the car market is nearly flat. This is because the once mass small car segment is not participating in the growth at all. This is clearly an affordability issue."
Hyundai Motor India also reported a 12% decline in June domestic sales. Its sales stood at 44,024 units compared to 50,103 units last year. Tarun Garg, HMIL’s Whole-time Director and Chief Operating Officer, cited geopolitical challenges affecting market sentiment but expressed cautious optimism for a demand recovery, supported by potential repo rate reductions and improved liquidity.
"As we come closer to the beginning of production at the Talegaon plant, we remain cautiously optimistic about a gradual recovery of demand, supported by a reduction in repo rates and improving liquidity on account of the cut in CRR. We are closely watching the global geopolitical scenario and are committed to delivering value and innovation to our customers across both domestic and export markets," Garg added. The company will start manufacturing cars at the Talegaon plant in Pune in Q3 FY26.
Tata Motors, the third-largest automaker in India by volume, saw the steepest decline among the top players, posting a 15% year-on-year drop in June sales. With 37,083 passenger vehicle units dispatched to dealers compared to 43,524 units last year, Shailesh Chandra, Tata Motors Passenger Vehicles MD, expects subdued industry growth but believes new launches will help the company outperform in hatchbacks, SUVs, and EVs.
"The EV segment emerged as a bright spot, driven by robust growth and the launch of new models across original equipment manufacturers (OEMs), enhancing customer interest and consideration," he said.
The downturn in sales isn’t uniform, however.
Mahindra & Mahindra defied the broader trend, registering an 18% growth in passenger vehicle sales with 47,306 units sold in June, marking its highest-ever SUV quarter, according to CEO Nalinikanth Gollagunta.
Similarly, Toyota Kirloskar Motor recorded 28,869 units compared to 27,474 units in June 2024. JSW MG Motor India saw a 21% growth, selling 5,829 units.
Meanwhile, in the two-wheeler segment, TVS Motor Company recorded a 10% rise in domestic sales to 2,81,012 units, while Royal Enfield’s domestic sales grew 16% to 76,957 units from 66,117 units. Bajaj Auto reported a 13% decline in total domestic sales, including commercial vehicles, with 1,88,460 units compared to 2,16,451 units last year.
