July Auto Retail Sales Data Shows Weakness For Two-Wheelers, But Tractors Moving Strong

Overall retail automobile sales is down 4.3% year-on-year in July 2025 and the finer print shows weakness across major categories, as per the data released by the Federation of Automobile Dealers Associations.

FADA, that tracks the actual retail auto sales, released its monthly report on Thursday that showed persistent weakness across categories barring tractors. Tractor sales are up 10.9% compared to July 2024, while two-wheelers sales were down over 6%.

Amongst other categories, three-wheeler sales are up 0.83 % YoY while passenger vehicle sales are down 0.8% YoY. Meanwhile, commercial vehicles sales have inched up by 0.23%.

Domestic two-wheeler sales have been impacted, especially in the lower CC segment and this seems to be impacting sales of players like Bajaj Auto and TVS Motor.

The weakness in July could be due to some purchase decisions getting deferred to August, in view of the festive season. Urban demand remains muted for passenger vehicles due to low enquiry and restrained customer sentiment.

Inventory level for cars continues to remain elevated at around 55 days, with robust tractor sales growth underpinned by enhanced agriculture subsidies and favourable rains.

Going forward, FADA believes monsoon tailwinds and festival fervour should spur demand, while export-tariff volatility and isolated flood risks call for vigilant risk management.