India’s auto sector continued its uneven recovery in July 2025, with SUVs and two-wheelers emerging as key growth drivers. Meanwhile, several passenger vehicle (PV) players witnessed muted traction in urban markets. Export momentum remained a bright spot across premium motorcycles and agri-machinery segments.

Maruti Suzuki Leads with Stable Volumes

Maruti Suzuki maintained its leadership position with 1.81 lakh units in total sales. Domestic sales accounted for 1.49 lakh units, while exports contributed 31,745 units. The carmaker’s performance reflects steady rural and tier-2 market demand, even as urban car sales show signs of saturation.

M&M Accelerates with 26% Growth, SUVs Shine

Mahindra & Mahindra delivered a robust 26% YoY growth in total sales, reaching 83,691 units. SUV volumes rose 20% to 49,871 units, powered by strong demand for the Scorpio-N, XUV700, and Thar. The automaker continues to gain ground with its rugged UV portfolio and expanding rural footprint.

Tata Motors Hit by 11% Drop in PV Sales, CVs Offer Resilience

Tata Motors faced headwinds in the PV segment, which declined 11% YoY to 40,175 units. However, its commercial vehicle (CV) business posted a 7% YoY rise to 28,956 units, driven by fleet upgrades and infrastructure-led demand. Total domestic sales stood at 69,131 units.

Hyundai's Momentum Softens Amidst Intense Competition

Hyundai Motor India clocked 60,073 units, including 16,100 export units. While premium hatchbacks and SUVs remained popular, growth in metro markets was muted due to saturated demand and rising competition in urban PV categories.

Two-Wheelers Outperform : TVS and Bajaj Drive Volume Surge

TVS Motor Reports Stellar 29% Growth

TVS Motor emerged as a standout performer, registering 4.56 lakh units in total sales, marking a 29% YoY jump. Its two-wheeler segment also surged 29%, supported by strong rural demand and momentum in both scooters and entry-level motorcycles.

Bajaj Auto Leans on Exports for Growth

Bajaj Auto sold 3.66 lakh units, with a modest 3% YoY increase. While domestic sales remained stable, exports powered overall performance, reinforcing Bajaj’s strength as a global motorcycle exporter, particularly in Africa, Latin America, and Southeast Asia.

Premium & Commercial Segment Highlights

Eicher Motors Surges 31%, Exports Jump 95%

Eicher Motors, maker of Royal Enfield bikes, posted 88,045 units, marking 31% YoY growth. Notably, exports soared 95%, led by strong demand for its 350cc+ models in the UK, Southeast Asia, and Latin America.

Ashok Leyland Rides CV Demand with 8% Growth

Ashok Leyland reported 15,064 units in total sales, reflecting an 8% rise. The growth was underpinned by infrastructure push, freight activity, and steady replacement demand in the commercial vehicle sector.

Escorts Kubota Sees Export-Led Tractor Growth

Tractor maker Escorts Kubota sold 7,154 units, up 2.7% YoY, with exports jumping 25.3%. The company saw rising traction in global agri-machinery markets, especially in Africa and Eastern Europe.

Final Take: A Tale of Two Markets

The July 2025 auto sales data underscores the divergent trends in India’s auto market:

• SUVs and two-wheelers remain the primary growth engines

• Urban PV demand is showing fatigue, impacting players like Tata Motors and Hyundai

• Commercial vehicle demand stays resilient, supported by infra spending and fleet upgrades

• Export performance is emerging as a critical growth lever, especially for premium motorcycles and agri-equipment

As the festive season approaches, the focus will shift to rural sentiment, monsoon performance, and pricing discipline across categories.