Business

India Auto Sales July 2025: Two-Wheelers Surge, 3-Wheelers Hit Record; PVs Stay Flat, Exports Shine

16/08/2025/11:03:am

Key Points

Total domestic sales across segments crossed 26.98 lakh units in July 2025; overall performance stable.
Two-wheelers up 8.7% YoY to 15.67 lakh; scooters up 16.2%, motorcycles up 4.7%.
Three-wheelers clock highest-ever July at 0.69 lakh, up 17.5% YoY.
Passenger vehicles marginally down 0.2% YoY to 3.41 lakh; sentiment subdued but steady.
Exports strong: PV exports up 8.7% in July; Q1 FY26 PV exports at all-time high 2.04 lakh (+13.2%).
Two-wheeler exports jump 33.5% in July; Q1 FY26 two-wheeler exports up 23.2%.
Festive season (starting with Onam) expected to lift demand in coming months.

New Delhi: India’s auto market posted a steady July with aggregate sales across passenger vehicles, two-wheelers, three-wheelers, and quadricycles crossing 26.98 lakh units, reflecting broad resilience despite a soft patch in cars and UVs. Two-wheelers provided the thrust, three-wheelers set a July record, while PVs were largely range-bound.

Two-Wheelers: Growth Broadens, Scooters Outpace Motorcycles

Total sales: 15.67 lakh, up 8.7% YoY.
Scooters: 6,43,169 units, up 16.2% YoY (from 5,53,642).
Motorcycles: 8,90,107 units, up 4.7% YoY (from 8,50,489).
What’s driving it: Urban mobility normalization, renewed replacement demand, and improved financing in key states; scooters benefit from city-centric adoption and women riders, while motorcycles ride rural/staple demand recovery.

Three-Wheelers: Best-Ever July

Sales: 0.69 lakh, up 17.5% YoY.
What’s driving it: Robust e-3W adoption in last-mile, steady urban shared mobility demand, and improved financing availability.

Passenger Vehicles: Subdued But Stable

Sales: 3.41 lakh, down 0.2% YoY.
Why the softness: Model changeovers in select segments, inventory calibration post launches, and a high base in SUVs temper growth; entry-level demand remains sensitive to affordability.

Exports: Momentum Accelerates

July PV exports: ~67,292 units, up 8.7% YoY (from 61,929).
July two-wheeler exports: 4,33,873 units, up 33.5% YoY (from 3,24,908).
Q1 FY26 PV exports: Record 2.04 lakh, up 13.2% YoY.
Q1 FY26 two-wheeler exports: 11.4 lakh, up 23.2% YoY.
What’s working: Stable demand in most markets; stronger traction in the Middle East and Latin America; recovery in Sri Lanka and Nepal; improving orders from Japan; incremental lift via FTAs such as with Australia.

Industry View & Outlook

SIAM notes a “stable” July across segments versus last year, with optimism building into the festive cycle beginning with Onam in late August. Dealers expect pre-festive stocking to begin in phases, with new launches and discounts supporting showroom traffic. Watch for:

Inventory discipline in PVs, particularly compact SUVs/hatchbacks.
Rural offtake trends for entry motorcycles and 125cc scooters.
Financing costs and approval rates as a swing factor for mass segments.
Export order sustainability in LatAm/Middle East and pace of recovery in neighboring markets.