Indian passenger car sales showed a significant decline in June this year, as denoted by dispatches from manufacturers to dealers, although a few relatively smaller companies were able to buck the trend, registering a modest growth, SteelOrbis learned on Thursday, July 3, from data released by various companies.
Aggregate passenger car sales in June 2025, as per dispatches to dealers, were recorded by the industry at 342,174 units, a fall of 6.4 percent from June 2024.
The largest passenger car maker in terms of market share, Maruti Suzuki India Limited (MSIL), reported sales of 118,906 units in June, a decline of 13 percent year on year.
The second-largest car maker Hyundai Motors India Limited (HMIL) sold 60,924 units, a fall of six percent, and Tata Motors Limited reported sales of 37,237 units, a fall of 15 percent, year on year.
Companies with smaller market shares like Toyota Kirloskar Motors Limited sold 27,474 units, a rise of five percent, and Mahindra & Mahindra reported sales of 48,329 units, a growth of 19 percent year on year.
"The slowdown in passenger car sales is largely due to a sharp decline in the smaller segment cars. Historically, passenger car sales used to grow at 1.5 times GDP growth. But now, even after 6.5 percent GDP growth, the car market is nearly flat. This is because the once mass small car segment is not participating in the growth at all. This is clearly an affordability issue," said Rahul Bharti, senior executive officer, corporate affairs, Maruti.