The Indian automobile industry delivered a mixed performance in July 2025 with two-wheeler and three-wheeler sales posting healthy year-on-year growth, while passenger vehicle demand remained largely flat. According to the Society of Indian Automobile Manufacturers (SIAM), overall production across passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 26,98,519 units during the month.
Passenger vehicle sales stood at 3,40,772 units, showing a marginal decline of 0.2 per cent compared with July 2024. Industry observers note that higher base figures from last year, combined with a cautious consumer sentiment in certain urban markets, contributed to the subdued growth. Without Tata Motors’ domestic data breakdown, SIAM indicated that PV sales excluding Tata Motors rose from 2,96,785 units in July 2024 to 3,01,251 units in July 2025.
Three-wheelers recorded their best-ever July sales at 69,403 units, registering a robust 17.5 per cent rise from the same month last year. Passenger carriers grew by 21.4 per cent, goods carriers by 10.6 per cent, and e-carts surged by 161.6 per cent. However, e-rickshaw sales fell sharply by 53.3 per cent, indicating uneven demand trends within the segment.
Two-wheeler sales climbed 8.7 per cent year-on-year to 15,67,267 units. Scooters led the growth with a 16.2 per cent increase, followed by motorcycles with a 4.7 per cent rise. Mopeds were the only sub-segment to decline, down 9.5 per cent compared with last year.
Rajesh Menon, Director General, SIAM, described July as a month of “stable performance” across segments but acknowledged that passenger vehicle sentiment remains muted. He expressed cautious optimism that the upcoming festive period, starting with the Onam celebrations later in August, could help lift sales momentum across categories.
The July performance suggests that while the entry-level and mass mobility categories continue to benefit from rural demand recovery and urban commuting needs, passenger vehicle growth is likely to remain under pressure until festival-driven consumer activity begins. This trend reinforces the need for strategic dealer stock management and targeted retail campaigns in the coming weeks to tap into the expected seasonal uplift.
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