July Auto Sales Fall 4% India Amid Weak Passenger, Two-Wheeler Demand

Automobile sales in major global markets showed signs of slowing in July 2025 amid varying economic and regulatory challenges. China's car sales growth decelerated sharply to 6.9% year-on-year, down from 18.6% in June, as tougher regulations and a harsh price war impacted the market. In India, domestic automobile retail sales fell 4% year-on-year, driven by weaker demand for passenger vehicles and two-wheelers, with rural demand hit by monsoon rains and urban demand subdued due to cautious consumer sentiment; however, tractor and commercial vehicle sales saw modest growth. The US used vehicle market experienced a slight monthly price decline of 0.5%, with year-on-year price increases moderating to 2.9%, affected by tariff-driven volatility; electric vehicle values continued to appreciate more strongly than non-EVs. Across these regions, factors such as tariff hikes, weather conditions, and consumer confidence played significant roles in shaping demand, with dealers optimistic about potential recovery during upcoming festive seasons through targeted marketing and financing strategies.