Auto Retails Declined By 4.31% In July 2025: FADA

The Federation of Automobile Dealers Associations (FADA) revealed the industry sales data for July 2025. The dealer body reported that the industry sales amounted to 19,64,213 units, down from 20,52,759 units last year. This represents a drop in sales over the same period last year, with overall retails declining by 4.31 per cent. Sales declined across most individual segments, with only tractor sales and three-wheeler sales witnessing year-on-year growth.

Also Read: Auto Sales July 2025: Mahindra, Kia Report Growth; Tata, Hyundai Sales Decline

Reflecting on July 2025 Auto Retail results, FADA President 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 per cent 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 per cent, 10.96 per cent and 0.23 per cent YoY respectively, whereas 2W, PV and CE contracted by 6.48 per cent, 0.81 per cent and 33.28 per cent YoY. ”

Also Read: Two-Wheeler Sales July 2025: Bajaj Auto Registers Dip; TVS, Royal Enfield, Suzuki Witness Growth

Starting with two-wheelers, the segment posted a year-on-year decline of 6.48 per cent, down from 14,49,487 units to 13,55,504 units. Month-on-month sales were down 6.28 per cent over June 2025. FADA attributed the decline in sales to prolonged heavy rains and crop-sowing activities which ultimately led to reduced demand, more in rural localities than urban areas. The dealer body, however, said that dealers remain confident of a post-monsoon uptick.

When it comes to passenger vehicle sales meanwhile, FADA reported a 0.81 per cent decrease in sales year-on-year, with sales amounting to 3,28,613 units during the month, down from 3,31,280 units. However sales did increase by 10.38 per cent over June 2025 (2,97,722 unit sales). FADA attributed low enquiry and restrained customer sentiment for a decrease in urban demand, although it stated that aggressive marketing and new-model introductions ultimately powered hinterland sales that picked up decisively towards month-end.

Three-wheeler sales saw some growth during the month– rising 0.83 per cent over July 2024. Sales in the month stood at 1,11,426 units – up from 1,10,511 units last year. Month-on-month sales, however, were up by a notable 10.73 per cent.

Tractor sales, meanwhile, were up 10.96 per cent from 79,961 units to 88,722 units in July 2025. Month-on-month, the segment was up 14.90 per cent. Commercial vehicle sales were up 0.23 per cent year-on-year and 4.19 per cent month-on-month.