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The July automobile dispatches reported a 1% MoM decline and a 14% YoY rise in volumes. PVs reversed its five-month slide, boosted by festive anticipation and robust SUV demand, with MSIL leading a 16% MoM surge. CVs dipped 1% MoM, despite a 3% MoM rise in LCVs, as truck volumes softened seasonally. 2Ws dispatches fell 4% MoM but rose 18% YoY, with exports offsetting domestic weakness. Tractors plummeted 45% MoM yet grew 5% YoY, influenced by seasonal dips and strong Kharif progress. These contrasting trends highlight the interplay of festive momentum and rural-export dynamics shaping the industry's trajectory.

Automobile Sales July - 2025

PV Segment

The PV segment this month exhibited a 10% MoM growth in dispatches, aligning with last month's projections as strengthening consumer sentiment ahead of the festive season and compelling discounts on high-demand models drove the sequential uptrend. After five months of decline MSIL reversed its downward trajectory with standout SUV and Compact segment performance, TAMO recorded unprecedented EV sales, M&M sustained its momentum through a diversified SUV portfolio and successful new-model rollouts. In contrast, HMIL diverged from this upward trend. On an annual basis, the segment recorded a marginal 1% YoY decline, with MSIL buoyed by robust international demand, M&M supported by strategic portfolio expansion, and HMIL continuing to post growth in export volumes despite volatility in domestic demand.

CV Segment

The CV segment in July posted a slight 1% MoM volume decline but a solid 7% YoY increase, showcasing resilience despite seasonal challenges. Domestic trucks, forming 23% of CV volumes, saw a decline of 5% MoM and 10% YoY, as anticipated due to monsoon impacts, with M&M the most affected and AL the least. Buses, comprising 10% of CV volumes, saw a 20% MoM drop, primarily due to declines in AL and TAMO, but registered a 9% YoY increase, driven primarily by TAMO's gains. LCVs, comprising 21% of CV volumes, outperformed with 3% MoM and 4% YoY growth, with TAMO recording the strongest upside and M&M the least expansion.

Tractor Segment

July's tractor segment volumes declined 45% MoM but grew 5% YoY, with M&M posting a 6% YoY rise and Escorts up 3% YoY. The sequential drop was largely domestic, where volumes contracted 46% MoM due to seasonal moderation following a high base driven by Rabi harvest-linked sales in June. In contrast, export volumes rose 6% MoM, with both M&M and Escorts recording equal sequential growth. On an annual basis, domestic dispatches grew 5% YoY, led by M&M, while exports posted a stronger 10% YoY increase driven by Escorts. With Kharif crop coverage advancing 4% YoY in July, supported by above-normal monsoons, healthy reservoir levels, and firm rural liquidity, the tractor segment remains well-positioned for continued growth momentum ahead.

2W Segment

In July, the 2W segment displayed ongoing volume volatility, with a 4% MoM decline yet an 18% YoY increase. Domestic dispatches, constituting 73% of 2W volumes, drove the sequential downturn, contracting 10% MoM, primarily due to HERO's performance, though a 12% YoY rise was observed, propelled by HERO and TVS. Notably, TVS recorded robust growth of 21% YoY and 10% MoM, standing out as a key performer. Exports, representing 27% of 2W volumes, surged 15% MoM, mitigating the overall sequential drop to just 4% MoM, while achieving a strong 37% YoY growth, led by HERO across both periods. In the e2W segment, TVS/BAJAJ/HERO sold 22,242/19,669/ 10,495 units, securing market share of 22%/19%/10% for the month.

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