India’s passenger vehicle industry is estimated to have posted one of its strongest monthly performances in July, with domestic dispatches rising by around 33% year-on-year to nearly 4.7 lakh units. Strong volumes from leading manufacturers, including Maruti Suzuki and Hyundai, along with robust growth reported by Tata Motors and Mahindra & Mahindra, helped drive the industry’s expansion during the month.The sustained momentum came as automakers continued to benefit from demand-supporting measures introduced over the past year, including GST 2.0, lower repo rates and income tax relief for individuals earning up to Rs 12 lakh.“Industry (passenger vehicle sales) should be around 4.65 lakh to 4.7 lakh in July this year. In July last year, the industry was around 3.5 lakh, so it is almost a growth of 33%,” Maruti Suzuki India Ltd (MSIL) senior executive officer, marketing & sales, Partho Banerjee, told reporters in a conference call.Explaining the factors supporting the market, Banerjee said GST 2.0, repo rate cuts and income tax relief for entry-level customers had continued to boost demand since last year.“Fundamentally, these three tailwinds are very much there,” Banerjee noted.
Maruti and Hyundai set new records
Maruti Suzuki led the market with its highest-ever domestic passenger vehicle sales of 1,96,203 units in July, compared with 1,37,776 units in the same month last year, registering a growth of 43.4%. “The company has witnessed all-round growth across segments from entry-level small cars to SUVs in July,” Banerjee said, adding that alternate fuel CNG models continue to have robust demand.Hyundai Motor India Ltd (HMIL) achieved its best-ever domestic monthly sales since inception, dispatching 54,210 units in July, up 23.3% from a year ago. “Our highest-ever monthly volume since inception, underscores the immense trust consumers place in brand Hyundai,” HMIL MD & CEO Tarun Garg said.Tata Motors Passenger Vehicles Ltd (TMPVL) also reported one of the steepest gains among major carmakers, with domestic passenger vehicle sales jumping 58% to 62,611 units in July from 39,521 units in the corresponding month last year.Mahindra & Mahindra followed the suit, posting healthy growth, with domestic utility vehicle sales rising 20% to 60,048 units from 49,871 units a year earlier.At the same time, Honda Cars India Ltd (HCIL) recorded domestic sales of 6,014 units during the month, reflecting growth of more than 48% over July last year.
Momentum remains strong
Apart from Indian auto giants, global car manufacturers also registered strong growth. Toyota Kirloskar Motor posted domestic sales of 30,516 units in July, up 5% from 29,159 units in the same month of 2025.Kia India registered wholesale dispatches of 28,200 units, marking a 27.4% increase over 22,135 units a year ago. The company said it was its best-ever July wholesale performance since inception.JSW MG Motor India also reported its highest-ever monthly wholesale volumes, dispatching 8,158 units to dealers during the month, up 22% year-on-year.Nissan Motor India Pvt Ltd (NMIPL) more than tripled its domestic wholesale volumes, reporting 4,518 units in July compared with 1,420 units in the same month last year.