Carmakers' sales to dealers in July cools

The three companies accounted for roughly two-thirds of retail car sales in June, with Maruti holding a 40 per cent market share, per industry data.

Market leader Maruti Suzuki's July sales fell 9.6 per cent 0n-year at 1,37,463 units, notching the first drop since December 2023.

Hyundai Motor’s sales to dealers also dropped 3.3 per cent on-year at 49,013 units in July, the first decline in the fiscal year that started in April.

Similarly, Tata Motors' sales slid by 6 per cent on-year to 44,725 units, dropping for the second consecutive month.

Auto analysts expect retail sales -- dealers' sales to customers -- to slow down this fiscal year after years of strong growth as urban customers upgraded to newer and bigger vehicles such as sports utility vehicles (SUVs).

Amit Hiranandani, automobile sector lead analyst at brokerage SMIFS said that for about two years, the industry had grown substantially. “One year of consolidation is expected, so this year would be flattish,” he noted, adding that hardly any growth could be expected in the passenger vehicle industry this year.

However, analysts still expect SUV sales to fare better than small cars as they cater to a more affluent demographic.

Sales at Mahindra & Mahindra, whose car portfolio is almost entirely made up of SUVs, said sales to dealers grew 15 per cent at 41.623 units in July, faring better than Hyundai and Tata but still recording its slowest growth this financial year.

Sales at Toyota Kirloskar Motor surged 44 per cent on-year to 31,656 units last month.

While Honda Cars sold 4,624 units, JSW MG Motor retailed 4,572 units in July.