While all major segments showed mixed results, the decline was led by the country's two most important categories-PVS and two-wheelers (2WS), which felt a delayed monsoon from July 2024, a delayed monsoon, silver urban spirit and stress of high base effects.
passenger vehicle
In July 2025, passenger vehicle retail was at 3,28,613 units, during the same month, 0.81 percent declined from 3,31,280 units last year. The section sequentially recovered 10.38 percent from the sale of 2,97,722 units from June 2025. Support came to a large extent from rural and semi-urban areas, where the last half of the demand was sought in the last half of the month due to the auspicious delivery dates of the ASHAD period, increase in new model launch, and OEM's aggressive marketing in Hunterland markets.
There was speed, but urban inquiry remained silent, and the consumer spirit was generally vigilant, especially in metro regions. The level of inventory was around 55 days between the dealership, and there was an area of concern before the upcoming festive cycle. The approach to the section is carefully optimistic. In August and September, along with several festivals such as Rakhi, Janamashtami, and Ganesh Chaturthi, retailers are ready to increase booking with footfall.
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In addition, the Reserve Bank of India (RBI) must support recently reduced interest rates, in collaboration with in-house financers such as Mercedes-Benz Finance, to reduce the impact of the price increase declared by luxury OEMs. Dealers and original tool manufacturers are now extinguishing the strong festive conversion to the stock and to recover the speed of development.
Two wheelers
In July 2025, in July 2024, with a decline of 6.48 per cent from 14,49,487 units, India's volume-agni two-wheeler experiences a sharp fall, with 13,55,504 units in July 2025. Since June 2025, sequential drop, which logged 14,46,387 units, was 6.28 percent. The recession was more rural in accent, inspired by heavy rains and crop sowing activities were continued which obstructed the movement and postponed purchasing decisions.
While some urban hubs displayed weak flexibility in demand, it was not strong enough to unbalance the overall decline in the section. Dealers delayed the low-in-person visitors, low inquiries, and delivery as shopkeepers stopped purchasing in the hope of upcoming holiday deals.
But the possibility for two-wheelers in August is quite bright. To fall together with several festivals and return to rural demand, dealers hope to see the return.
The stock is still healthy, and manufacturers are likely to introduce publicity proposals and finance plans for buyers as well as rural buyers. Once the rural liquidity revives the post-monsoon and the sowing is settled, two-wheelers can pick up steam during the volume peak festival season.
commercial vehicle
The commercial vehicle (CV) section was largely flat with 0.23 percent YOY increase, registered 76,439 units in July 2025, compared to 76,261 units in the same month last year. Mother, 73,367 units of June increased by 4.19 percent in this section. While the total figures indicated stability, the underlying patterns divided between the city and the village markets.
Urban CV sales were operated by institutional orders, demand for school buses and improving the availability of stocks, especially during the new model launch. Rural CV sales, on the contrary, are still struggling with a delay in debt disbursement to upgrade or increase the fleet.
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Moving forward, dealers feel that the pending orders in some states and purchasing governments can help increase CV's demand in September and August. In addition, the demand for freight transportation must experience some seasonal pick-up after the monsoon, especially in southern and western regions. However, rural CV volumes can be cautious until the cargo movement in segments such as cement, construction and agri improves more strongly.
Three wheelers
In July 2025, three-wheeler retail sales were on 1,11,426 units, an increase of 0.83 per cent YOY over 1,10,511 units during the same period last year, and in June 2025 more than 1,00,625 units increased by 10.73 per cent. Vehicles in urban and semi-urban areas.
Nevertheless, the segment also indicated deviation, 10.49 percent yoy with e-rickshaw (passenger) volume fell, possibly the market saturation and limited subsidy and access to credit. Commercial activity in the goods carrier in this segment is reflected in the meantime, which falls 3.29 percent yoy.
Despite the contradictory signals, players estimate to be stable in the near future, receiving continuous demand in urban areas for inexpensive final-meal mobility solutions. Electric three-wheelers are likely to rebound if new financing participation or state-level EV incentives are introduced before the festival season.
Industry outlook
Despite the recession in July, Fada's approach to August and the widespread festive season remains carefully optimistic. Categories dealers are preparing for better demand as a approach to many religious and cultural festivals, and the consumer's spirit is expected to recover, especially in rural India where monsoon has generally been favorable.
Meanwhile, external risk such as currency continues to oversee the ups and downs in the currency. According to Fada dealer Confidence Survey, 59 percent of dealers expected an increase in August, 32 percent of the sales of flats, and only 9 percent estimated de-goth- an indication is that the retail ecosystem is preparing for a second of the year.
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First published date: 07 August 2025, 12:45 pm IST