June 2025 Car Sales Report: Smaller Cars Drag Down Passenger Vehicle Market
The passenger vehicle (PV) segment faced notable headwinds in June 2025, primarily due to weakened demand in the small car category. As a result, industry wholesales in the domestic market fell by over 6% year-on-year (y-o-y) during the month.
According to industry data, total PV volumes stood at 3,20,277 units in June 2025, compared to 3,42,174 units in June 2024 — reflecting a 6.4% decline.
| Domestic PV Volumes | June 2025 | June 2024 | Growth |
|---|---|---|---|
| 3,20,277 | 3,42,174 | -6.4% |
The slowdown was particularly evident at Maruti Suzuki India, the country’s largest carmaker, which saw its domestic PV wholesales dip 13.3% y-o-y to 1,18,906 units in June 2025.
“The slowdown in PV sales is largely due to a sharp decline in the smaller segment cars. Historically, PV sales used to grow at 1.5 times the GDP growth. But now, even after 6.5% GDP growth, the car market is nearly flat. This is because the once mass small car segment is not participating in the growth at all. This is clearly an affordability issue,”
— Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki
Entry-level models such as the Alto and the S-Presso contributed just 6,414 units collectively, making up only 5.4% of Maruti’s total domestic PV sales during the month — underscoring the sharp contraction in the once-dominant small car space.
The trend highlights an ongoing shift in consumer preference towards larger vehicles, alongside affordability challenges in the entry-level segment, which continues to weigh heavily on overall market performance.