7th August’25, Mumbai, INDIA: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for July’25.
July’25 Retails
Reflecting on July 2025 Auto Retail results, FADA President Mr. C S Vigneshwar said: “After three consecutive months of growth, India’s auto retail sector applied the brakes in July, with overall retails declining by 4.31% YoY. This pullback largely stems from a high-base effect in July 2024, when an extreme heat wave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month.
Segment‐wise, 3W, Trac and CV achieved growth of 0.83%, 10.96% and 0.23% YoY respectively, whereas 2W, PV and CE contracted by 6.48%, 0.81% and 33.28% YoY.
In the 2W space, July saw a 6.48% YoY decline and a 6.28% MoM drop, as crop-sowing activities and prolonged heavy rains dampened rural footfalls more sharply than urban demand. Dealers are nevertheless confident of a post-monsoon uptick, with several purchase decisions deferred to August ahead of the festive season—making strategic stock alignment and focused rural–urban engagement imperative for reviving momentum.
The PV segment contracted by 0.81% YoY even as volumes surged 10.38% MoM, driven by robust rural demand. 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 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.
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 financier disbursements, prompting many buyers to defer purchases to the post-monsoon period.
Finally, the Trac segment delivered robust performance, with volumes up 10.96% YoY and 14.9% MoM. The timely release of enhanced agricultural subsidies and favourable monsoon rains—together with strengthened rural liquidity—spurred a marked increase in purchase intent. This resilience underscores the pivotal role of policy interventions in sustaining agri-rural demand.”
Near-Term Outlook
From an agrarian demand perspective, the monsoon outlook through September appears broadly supportive—India is projected to receive normal to above‐normal rainfall (approximately 106 % of the long‐period average), which should bolster crop prospects and rural liquidity—albeit with heightened localized flood and landslide risks in select eastern, northeastern and peninsular pockets. However, external headwinds have emerged as the U.S. administration’s imposition of an additional 25 % tariff on Indian exports has precipitated a 0.4 % dip in benchmark equity indices and a depreciation of the rupee, injecting volatility into financial markets. The resulting wealth erosion and import‐cost pressures on exporters could erode consumer confidence, trigger a precautionary rise in household savings and exert downward pressure on discretionary spending—including on vehicles—over the near term.
Dealer sentiment for the near-term (July–September) remains broadly constructive, with 63% of dealers forecasting growth, 27% expecting flat performance and only 9% bracing for degrowth. 2W members anticipate that the convergence of four major festivals—Rakhi, Janmashtami, Independence Day and Ganesh Chaturthi—alongside targeted promotional schemes, aggressive rural engagement and healthy stock levels will drive incremental sales, even as monsoon rains temper footfalls. PV dealers point to a similar festival‐led uplift, underpinned by new model introductions, enhanced EV incentives and deepened finance support. CV dealers remain optimistic on the back of a robust order pipeline and increased rural liquidity from agricultural subsidies, which together offset seasonal logistical headwinds. In aggregate, a festival-driven demand uptick—bolstered by market-specific schemes, inventory readiness and resilient rural sentiment—underpins a positive near-term outlook.
While monsoon tailwinds and festival fervour converge to energise demand, the spectre of export-tariff volatility and isolated weather shocks underscores the need for vigilant stewardship. By harnessing precision-targeted promotions, partnership-driven finance solutions and dynamic rural–urban engagement, the industry can navigate these headwinds and anchor itself on a trajectory of sustained retail growth. In sum, we enter August with a sense of guarded optimism, confident in the upside but ever mindful of the risks.