Carmakers lose speed as demand still in slow lane

New Delhi: The April-June 2025 quarter saw severe pressure on the domestic car market, with challenges in generating fresh demand as growing geopolitical tensions and concerns over the economy depressed consumer sentiments.

Maruti Suzuki, the country's biggest carmaker, reported a 6% decline in first-quarter wholesale numbers as the company dispatched around 3.9 lakh units to dealerships compared to 4.2 lakh units in the same quarter of the previous fiscal.

Hyundai experienced a decline of 12%, while Tata Motors also saw a 10% fall in its wholesale numbers.

Mahindra & Mahindra and Kia Motors were among the companies that experienced growth in dispatches, backed by new models in their portfolio.

Maruti stated that new demand remains under pressure, adding that industry's outlook remains cautious. The company is also proceeding slowly with its Rs 35,000-crore project for a new factory in Gujarat due to the uncertain situation.

Tarun Garg, director and COO at Hyundai India, said the geopolitical situation has impacted market sentiments, though the company anticipates some recovery going forward.

Shailesh Chandra, MD of Tata Motors' passenger vehicles and electric mobility businesses, said the industry experienced volume pressures, particularly in May and June. He said the flat growth reflects continued softness in demand.


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