India's Auto retails decline 4.31% in July

The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for July'25.

After three consecutive months of growth, India's auto retail sector applied the brakes in July, with overall retails declining by 4.31% Y-o-Y.

In the 2W space, July saw a 6.48% Y-o-Y decline and a 6.28% M-o-M drop, as crop-sowing activities and prolonged heavy rains dampened rural footfalls more sharply than urban demand.

The PV segment contracted by 0.81% Y-o-Y even as volumes surged 10.38% MoM, driven by robust rural demand. 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.

CV posted a modest 0.23% Y-o-Y increase and a 4.19% M-o-M uptick, led by urban momentum. Dealers cited newmodel launches, aggressive marketing support, bulk institutional orders and timely stock availability as key drivers, alongside targeted schemes that bolstered school-bus volumes.

Finally, the Trac segment delivered robust performance, with volumes up 10.96% Y-o-Y and 14.9% M-o-M. The timely release of enhanced agricultural subsidies and favourable monsoon rains'together with strengthened rural liquidity'spurred a marked increase in purchase intent.

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