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Informist, Thursday, Aug. 7, 2025

 

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--FADA: Jul total vehicle retail sales 1.96 mln units 
--FADA: Jul total vehicle retail sales 1.96 mln units, down 4.3% on year 
--FADA: Jul passenger vehicle retail sales 328,613 units, down 0.8% on yr 
--FADA: Jul 2-wheeler retail sales 1.36 mln units, down 6.5% on year 
--FADA: Jul CV retail sales 76,439 units, up 0.2% on year 
--FADA: Jul 3-wheeler retail sales 111,426 units, up 0.8% on year 
--FADA: Jul tractors retail sales 88,722 units, up 11% on year

 

NEW DELHI – Automobile retail sales in the country in July fell to a five-month low owing to weakness in two-wheelers, passenger vehicles, and commercial vehicles even as tractors continued to shine, data from the Federation Of Automobile Dealers Associations showed Thursday.

 

Dealerships sold 1.96 million automobiles in July, down 4.3% on year. This is the first on-year contraction in sales after three consecutive months of growth.

 

"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," said the auto body's President C.S. Vigneshwar in a press release.

 

Two-wheeler retail sales fell 6.5% on year and sequentially to 1.36 million units in July. Footfalls at dealerships were affected by the crop-sowing season last month and heavy monsoon, FADA said. Customers likely deferred their purchase decisions to August ahead of festival season, causing the drop in sales.  

 

Retail sales of passenger vehicles saw a mild downturn on year to 328,613 units in July. Robust rural demand helped sales grow over 10% on a monthly basis. "The Aashaada period and auspicious delivery days, combined with targeted schemes, new-model introductions and aggressive rural marketing, powered hinterland sales that picked up decisively towards month-end," FADA said. Urban demand remained subdued due to low enquiries and restrained consumer sentiment. Inventory levels are currently steady at 55 days, FADA said. 

 

Commercial vehicle sales last month remained largely unchanged from last year at 76,439 units. While sales of light commercial vehicles saw a mild uptick, heavy commercial vehicle sales contracted 3% on year. "Dealers cited new model launches, aggressive marketing support, bulk institutional orders and timely stock availability as key drivers, alongside targeted schemes that bolstered school-bus volumes," FADA said. Rural haulage demand was fragmented amid heavy rainfall, seasonal softness in cement, coal, and construction logistics, the auto body said. As a result, buyers deferred purchases to the post-monsoon period.

 

Construction equipment sales fell 33% on year to 3,509 units. Tractors outperformed with an 11% year-on-year and 15% month-on-month growth to 88,722 units in July. "The timely release of enhanced agricultural subsidies and favourable monsoon rains--together with strengthened rural liquidity--spurred a marked increase in purchase intent," FADA said. 

 

OUTLOOK

Monsoon outlook currently appears broadly supportive of automobile sales but localised floods and landslide risks in select regions pose a risk. External headwinds in the form of a 50% tariff by the US could lead to wealth erosion and import-cost pressures on exporters, which could erode consumer confidence, FADA said. In the near term, this is likely to trigger a precautionary rise in household savings and exert downward pressure on discretionary spending--including on vehicles, FADA said.

 

Around 63% of dealers surveyed by the auto body expect a growth in Jul-Sept while 27% expect a flat performance. Around 9% of dealers expect a contraction. Dealers selling two-wheelers expect festivals such as Raksha Bandhan, Janmashtami, Independence Day, and Ganesh Chaturthi, in addition to promotional schemes, will drive sales.

 

Passenger vehicle dealers also expect to gain from the festival season while commercial vehicle dealers remain optimistic on the back of a robust order pipeline and increased rural liquidity from agricultural subsidies. "In aggregate, a festival-driven demand uptick—bolstered by market-specific schemes, inventory readiness and resilient rural sentiment—underpins a positive near-term outlook," FADA said.  End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

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