Maruti Suzuki Reports Mixed Results Amidst Changing Market Dynamics

In July, Maruti Suzuki reported a slight increase in vehicle dispatches, while Tata Motors and Hyundai faced declines. Mahindra & Mahindra and Kia India showed growth, highlighting mixed trends in the automotive market. Factors such as rising costs and changing consumer demand are influencing sales dynamics. As the festive season approaches, optimism remains for improved sales, particularly in rural areas. This article delves into the latest figures and insights from major players in the industry, providing a comprehensive overview of the current automotive landscape.

By Narendra Chaudhary Aug 1, 2025, 19:40 IST

Market Overview

New Delhi: In light of a decline in domestic demand, Maruti Suzuki India announced a slight rise in vehicle dispatches to dealers for July, while competitors Tata Motors and Hyundai Motor India experienced a drop in sales.

Other significant players, Mahindra & Mahindra and Kia India, reported growth in vehicle dispatches, with Mahindra achieving double-digit growth and Kia seeing a single-digit increase.

Maruti Suzuki, the leading car manufacturer in India, dispatched 137,776 passenger vehicles in July, a minor increase from 137,463 units during the same month last year.

The company noted a decrease in sales of mini segment cars, which include models like Alto and S-Presso, dropping to 6,822 units from 9,960 units in July 2024.

Conversely, compact car sales, featuring Baleno, Dzire, Ignis, and Swift, rose to 65,667 units, up from 58,682 units a year prior.

Utility vehicles, which include Grand Vitara, Brezza, Ertiga, and XL6, saw a decline in sales to 52,773 units from 56,302 units in July last year, marking a 6% decrease.

During a virtual press conference, MSI Senior Executive Director (Service) Partho Banerjee mentioned that the company is adjusting dispatches to better manage stock levels within its sales network.

He also highlighted challenges stemming from increased costs due to the standardization of six airbags across all models, and efforts are underway to collaborate with financial institutions to tackle financing issues.

Banerjee observed that sales growth in rural regions has slowed to 2-3% compared to approximately 10% last year, while urban areas are facing difficulties due to factors such as a slowdown in the IT sector and other uncertainties.

Looking ahead, Banerjee expressed optimism for the upcoming festival season, noting early signs of increased bookings in Kerala.

"The overall market conditions appear favorable, supported by good monsoon rains and anticipated increases in Minimum Support Prices (MSP)," he added.

Hyundai Motor India reported a 10% year-on-year decline in domestic dispatches, totaling 43,973 units in July.

"Despite recent softness in the auto industry, we remain hopeful with the festive season approaching and are prepared with strong supply and exciting product launches," stated Tarun Garg, COO of Hyundai.

Mahindra & Mahindra reported a 20% increase in utility vehicle sales, reaching 49,871 units compared to 41,623 units in July last year.

"Our SUV growth has been bolstered by the recent launch of the XUV 3XO 'REVX' Series and the initiation of deliveries for two variants of the BE 6 and XEV 9E models," said Nalinikanth Gollagunta, CEO of Mahindra's Automotive Division.

Tata Motors experienced a 12% year-on-year decline in total passenger vehicle dispatches, totaling 39,521 units in July.

Kia India, however, reported an 8% increase in total sales, reaching 22,135 units in July. "Our consistent sales performance reflects the trust Indian customers have in Kia, driven by our commitment to delivering high-quality, feature-rich vehicles that cater to evolving customer needs," remarked Joonso Cho, Chief Sales Officer of Kia India.

Toyota Kirloskar Motor noted a 3% year-on-year increase in sales, totaling 32,575 units in July, with 29,159 units sold in the domestic market.

"Our consistent market acceptance underscores our dedication to a customer-centric approach," stated Varinder Wadhwa, Vice President of Sales-Service-Used Car Business at TKM.

In the two-wheeler segment, Bajaj Auto reported a 13% decline in domestic sales, totaling 183,143 units in July, down from 210,997 units sold in the same month last year.

In contrast, Royal Enfield saw a significant 25% year-on-year increase in domestic sales, reaching 76,254 units last month, compared to 61,208 units in the previous year.