India’s automotive sector grappled with a significant demand slump in June 2025, as Maruti Suzuki, the country’s number one carmaker, reported a 13% drop in domestic passenger vehicle dispatches, totalling 1,18,906 units compared to 1,37,160 units in June 2024. This downturn reflects broader challenges in the passenger vehicle market, particularly in the entry-level segment. “The small car segment’s decline, despite 6.5% GDP growth, reflects an affordability crisis,” said Rahul Bharti, MSI Senior Executive Officer. Like Alto and S-Presso saw sales plummet to 6,414 units from 9,395, while compact models (Baleno, Celerio, Dzire, Ignis, Swift, WagonR) declined to 54,177 units from 64,049. Utility vehicles, including Grand Vitara, Brezza, and Jimny, dropped to 47,947 units from 52,373.
It wasn’t a good month for Hyundai Motor IndiaHyundai Motor India either as the company reported a 12% dip in domestic dispatches, with 44,024 units compared to 50,103 units last year. SUVs continue to lead, contributing 67.6% to total domestic sales in June 2025. COO Tarun Garg cited geopolitical tensions as a key factor, but anticipates recovery with lower repo rates and Talegaon plant production.
While others struggle, Mahindra, Toyota, and MG accelerate ahead
Mahindra & Mahindra defied the downturn and managed to achieve an 18% surge in utility vehicle sales to 47,306 units from 40,022 units, marking its highest-ever SUV sales quarter. Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd, said, “The quarter ended on a very positive note for us, marking the highest quarter ever for SUVs.”
Toyota Kirloskar Motor (TKM) reported a 5% sales increase to 28,869 units from 27,474, driven by strong SUV and MPV demand. The company posted an impressive 40% year-on-year growth in June 2024, selling a total of 27,474 units. This figure includes 25,752 units sold in the domestic market and 1,722 units exported. Highlighting strong momentum in sales performance, Sabari Manohar – Vice President, Sales-Service-Used Car Business, Toyota Kirloskar Motor said, “We achieved our highest ever monthly sales of 27,474 units in June, and the overall 47% growth for the Calendar Year highlights the success of our invigorated strategy.“
JSW MG Motor India saw a robust 21% year-on-year growth, dispatching 5,829 units, propelled by EVs like the Windsor. It wasn’t all smooth sailing for Tata Motors as the company reported a 15% drop in passenger vehicle sales, including EVs, with 37,083 units sold compared to 43,524 units in the same period last year. Despite the dip, Managing Director Shailesh Chandra remains optimistic, citing upcoming launches in hatchbacks, SUVs, and the growing EV momentum as key drivers expected to help Tata outperform the currently sluggish market.
Two-wheeler segment shows mixed results
In the two-wheeler segment, Bajaj Auto reported a 13% drop in total domestic sales, including commercial vehicles, to 1,88,460 units from 2,16,451 units. Royal Enfield, however, saw a 16% rise in domestic sales to 76,957 units from 66,117, fueled by models like the Himalayan 450. TVS Motor Company recorded a 10% growth in two-wheeler sales, reaching 2,81,012 units, with scooters and EVs like the iQube driving demand.
Honda Motorcycle & Scooter India (HMSI) announced its sales figures for June 2025, reporting a total of 4,29,147 units, comprising 3,88,812 units sold domestically and 40,335 units exported. This marks a year-on-year growth of approximately 14% compared to June 2024, when the company sold around 3.76 lakh units. For the Year-To-Date FY26 period (April to June 2025), HMSI recorded total sales of 13,75,120 units, including 12,28,961 units in domestic sales and 1,46,159 units exported. This reflects a 17% growth over the same period last year, underlining the brand’s strong performance across both domestic and international markets.
The mixed performance across segments underscores affordability challenges and geopolitical impacts, with optimism pinned on new launches and policy support.
