Small Cars, Smaller Numbers—June Drives PV Sales into the Slow Lane

Image Source: Fortune India

India’s domestic passenger vehicle (PV) sales totaled 312,849 units in June 2025, marking a 7.4% year-on-year decline, according to data released by industry bodies and OEMs. The drop reflects subdued consumer sentiment, inventory adjustments, and affordability challenges, particularly in the entry-level car segment.

Key Highlights from June 2025

Maruti Suzuki: Down 13% YoY to 118,906 units, citing weak demand for small cars like Alto and Swift

Hyundai Motor India: Fell 12% YoY to 44,024 units, impacted by geopolitical uncertainty
Tata Motors: Dropped 15% YoY to 37,083 units, lowest monthly volume since Dec 2021
Mahindra & Mahindra: Bucked the trend with 18% YoY growth, reaching 47,306 units, driven by SUV demand2
Toyota Kirloskar: Up 3% YoY to 26,453 units, supported by hybrid and utility vehicle sales

Market Trends & Analysis

Entry-Level Segment Struggles: Prices have surged over 70% since 2017, shrinking demand for small cars
Inventory Recalibration: Average inventory levels hovered around 50 days, prompting cautious dispatches
EVs & Hybrids Rise: Electric four-wheeler penetration hit 3.6%, with brands like MG and Toyota gaining traction
Export Momentum: While domestic sales dipped, PV exports surged, led by Maruti (+37%) and Tata (+68%)

Industry Voices

“The car market is nearly flattish despite 6.5% GDP growth. The mass small car segment is not participating in the recovery,” said Rahul Bharti, Senior Executive Officer, Maruti Suzuki2 “We remain cautiously optimistic about demand revival, supported by monetary easing,” added Tarun Garg, COO, Hyundai Motor India

Sources: ET Auto,TopGear India, The Hindu BusinessLine, Hindustan Times Auto