Car Sales on Slow Lane due to Sluggish Small Cars Market
1 July 2025 9:29 PM IST1 July 2025 9:29 PM IST
Sales at Maruti Suzuki, India’s biggest car maker, dropped 13.3 per cent at 1,18,906 units in June 2025 from 1,37,160 units sold in June 2024
Combined car sales from all automakers in India in June got into slow lane posting 6 per cent decline at 3.20 lakh units, compared to 3.41 lakh units in June 2024 (Representational file image)
Pune: Combined car sales from all automakers in India in June got into slow lane posting 6 per cent decline at 3.20 lakh units, compared to 3.41 lakh units in June 2024 on the back of slowing consumer demand, high inventory levels, and recent price hikes.
Sales at Maruti Suzuki, India’s biggest car maker, dropped 13.3 per cent at 1,18,906 units in June 2025 from 1,37,160 units sold in June 2024.
“The slowdown in passenger vehicle sales is largely due to a sharp decline in the smaller car segment,” Rahul Bharti, Senior Executive Officer, Corporate Affairs at Maruti Suzuki told Financial Chronicle.
He said historically, passenger vehicle sales used to grow at 1.5 times the GDP growth but now even after 6.5 per cent GDP growth, the car market is nearly flattish.
“This is because the big mass small car segment is not participating in the growth at all. This is clearly an affordability issue,” Bharti noted.
He said since 2019, the entry-level price point in the industry has jumped by over 70 per cent, largely driven by stricter regulations and the sales of smaller cars have fallen by over 70 per cent.
However, sales of SUVs at Mahindra jumped 18 per cent at 47,306 units in June, up from 40,022 units it sold last year. “Apart from the impressive growth in June, the quarter ended on a very positive note for us, marking the highest quarter ever for SUVs,” Nalinikanth Gollagunta, CEO, Automotive Division at M&M, said.
Sales at Hyundai dropped 12 per cent to 44,024 units in June compared to 50,103 units it sold last year in the same month.
Similarly, Tata Motors’ sales also declined 15 per cent at 37,083 units, down from 43,524 units sold last year. “In Q1 FY26, the passenger vehicle industry experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand. But the electric vehicle segment emerged a bright spot,” Shailesh Chandra, MD, Tata Motors Passenger Vehicles, said.
However, sales at Toyota Kirloskar Motor rose 5 per cent at 28,869 units in June, up from 27,474 units it sold last year.
JSW MG Motor India sold 5,829 units last month, clocking 21 per cent YoY growth.
Sales at Maruti Suzuki, India’s biggest car maker, dropped 13.3 per cent at 1,18,906 units in June 2025 from 1,37,160 units sold in June 2024.
“The slowdown in passenger vehicle sales is largely due to a sharp decline in the smaller car segment,” Rahul Bharti, Senior Executive Officer, Corporate Affairs at Maruti Suzuki told Financial Chronicle.
He said historically, passenger vehicle sales used to grow at 1.5 times the GDP growth but now even after 6.5 per cent GDP growth, the car market is nearly flattish.
“This is because the big mass small car segment is not participating in the growth at all. This is clearly an affordability issue,” Bharti noted.
He said since 2019, the entry-level price point in the industry has jumped by over 70 per cent, largely driven by stricter regulations and the sales of smaller cars have fallen by over 70 per cent.
However, sales of SUVs at Mahindra jumped 18 per cent at 47,306 units in June, up from 40,022 units it sold last year. “Apart from the impressive growth in June, the quarter ended on a very positive note for us, marking the highest quarter ever for SUVs,” Nalinikanth Gollagunta, CEO, Automotive Division at M&M, said.
Sales at Hyundai dropped 12 per cent to 44,024 units in June compared to 50,103 units it sold last year in the same month.
Similarly, Tata Motors’ sales also declined 15 per cent at 37,083 units, down from 43,524 units sold last year. “In Q1 FY26, the passenger vehicle industry experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand. But the electric vehicle segment emerged a bright spot,” Shailesh Chandra, MD, Tata Motors Passenger Vehicles, said.
However, sales at Toyota Kirloskar Motor rose 5 per cent at 28,869 units in June, up from 27,474 units it sold last year.
JSW MG Motor India sold 5,829 units last month, clocking 21 per cent YoY growth.
( Source : Deccan Chronicle )
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