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Representative imageThe sluggishness in the car industry was evident as wholesale deliveries in July, ahead of the festive season of Onam and Ganesh Chaturthi, were muted. Top makers, such as Tata Motors, Hyundai, Toyota and Honda, reported a decline in dispatches (year-on-year), with Maruti reporting flat numbers.
Mahindra and Kia saw growth in numbers, but the overall mood of the industry remains subdued. Industry officials spoke of challenges in generating demand as geopolitical tensions, fears from US tariffs and job cuts in the IT sector keep consumer sentiments low.
Maruti, the country’s largest carmaker, said while demand condition was tough, the company expected revival during the festive period. “The overall industry is not growing… (and) it’s not a good sign,” Partho Banerjee, senior executive officer (marketing & sales), said. He added that affordability, especially of entry-level cars, remains a challenge and during the festival, company expected to see “green shoots” building up.
Hyundai, which saw a 10% decline in domestic sales, said there was “some softness” in demand in recent months. “… we remain optimistic with the onset of the festive season and are fully geared up with robust supply and product offerings,” Tarun Garg, director & COO, said.
Car companies are planning new launches to kick up demand and attract customers. Swedish luxury carmaker Volvo launched the next-gen version of its top-seller XC60 SUV at Rs 72 lakh (ex-showroom). MD Jyoti Malhotra said Volvo would consider bringing in plug-in hybrids to India if the tax structure gets conducive, and added that an FTA with the EU — on the lines of the India-UK trade deal — would help attract investments and new car models. The industry believes that while demand has been difficult so far, the festive season may see a turnaround. Companies are working on new model launches and offering discounts and incentives to push the numbers.
- Published On Aug 2, 2025 at 06:00 PM IST
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