The Indian passenger vehicle market entered August 2025 on a cautious note, as industry-wide sales reflected both seasonal adjustments and shifting consumer sentiment. With the festive season on the horizon, OEMs balanced production with dealer stock levels, while demand patterns highlighted the strength of SUVs and premium offerings against a backdrop of declining hatchback and entry-level sales.
The numbers tell a story of consolidation: most major players reported YoY declines, though a handful managed to buck the trend with impressive growth. Let’s break down the performance.
Total Market Overview: August 2025 vs August 2024
-
Total Sales (Aug’25): 3,27,719
-
Total Sales (Aug’24): 3,54,273
-
YoY Growth: -7.5%
-
Total Sales (Jul’25): 3,46,669
-
MoM Growth: -5.5%
The market contracted YoY by 7.5%, with volumes falling below the 3.3 lakh mark. Compared to July 2025, sales were also down 5.5%, underlining a demand slowdown ahead of festive-led recovery expected in September–October.
| Rank | OEM | Aug’25 Sales | Aug’24 Sales | YoY Growth | Jul’25 Sales | MoM Growth | Aug’25 MS | Aug’24 MS | MS Diff |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Maruti Suzuki | 1,31,278 | 1,43,075 | -8.2% | 1,37,776 | -4.7% | 40.1% | 40.4% | -0.3% |
| 2 | Hyundai | 44,001 | 49,525 | -11.2% | 43,973 | 0.1% | 13.4% | 14.0% | -0.6% |
| 3 | Tata | 41,001 | 44,142 | -7.1% | 39,521 | 3.7% | 12.5% | 12.5% | 0.1% |
| 4 | Mahindra | 39,399 | 43,277 | -9.0% | 49,871 | -21.0% | 12.0% | 12.2% | -0.2% |
| 5 | Toyota | 29,302 | 28,589 | 2.5% | 29,159 | 0.5% | 8.9% | 8.1% | 0.9% |
| 6 | Kia | 19,608 | 22,523 | -12.9% | 22,135 | -11.4% | 6.0% | 6.4% | -0.4% |
| 7 | MG | 6,578 | 4,571 | 43.9% | 6,678 | -1.5% | 2.0% | 1.3% | 0.7% |
| 8 | Skoda | 4,971 | 2,772 | 79.3% | 5,554 | -10.5% | 1.5% | 0.8% | 0.7% |
| 9 | Honda | 3,850 | 5,326 | -27.7% | 4,050 | -4.9% | 1.2% | 1.5% | -0.3% |
| 10 | Renault | 3,015 | 3,018 | -0.1% | 2,575 | 17.1% | 0.9% | 0.9% | 0.1% |
| 11 | VW | 2,719 | 3,577 | -24.0% | 3,212 | -15.3% | 0.8% | 1.0% | -0.2% |
| 12 | Nissan | 1,384 | 2,263 | -38.8% | 1,420 | -2.5% | 0.4% | 0.6% | -0.2% |
| 13 | Citroen | 403 | 1,275 | -68.4% | 494 | -18.4% | 0.1% | 0.4% | -0.2% |
| 14 | Jeep | 210 | 340 | -38.2% | 251 | -16.3% | 0.1% | 0.1% | 0.0% |
| TOTAL | 3,27,719 | 3,54,273 | -7.5% | 3,46,669 | -5.5% |
Manufacturer-Wise Performance Analysis
1. Maruti Suzuki – Volumes Hold, Share Stable
-
Aug’25 Sales: 1,31,278
-
YoY Growth: -8.2%
-
MoM Growth: -4.7%
-
Market Share: 40.1% (down 0.3%)
Maruti Suzuki maintained its dominant position, though volumes fell YoY and MoM. Its market share remained broadly steady at ~40%, reflecting relative resilience despite shrinking entry-hatchback demand. SUVs like Brezza and Grand Vitara continue to cushion declines.
2. Hyundai – Slight MoM Relief
-
Aug’25 Sales: 44,001
-
YoY Growth: -11.2%
-
MoM Growth: +0.1%
-
Market Share: 13.4% (down 0.6%)
Hyundai recorded a sharp YoY drop but posted marginal MoM growth, supported by Creta’s consistent traction. However, dependence on a few top models kept overall volumes under pressure.
3. Tata Motors – Back in Growth MoM
-
Aug’25 Sales: 41,001
-
YoY Growth: -7.1%
-
MoM Growth: +3.7%
-
Market Share: 12.5% (flat YoY)
Tata showed signs of a recovery in August with positive MoM growth, aided by stable demand for Nexon and Punch. The YoY dip highlights the tougher base of August 2024.
4. Mahindra – Post-Peak Correction
-
Aug’25 Sales: 39,399
-
YoY Growth: -9.0%
-
MoM Growth: -21.0%
-
Market Share: 12.0% (down 0.2%)
After a record July, Mahindra faced a steep MoM correction. The Scorpio, XUV700, and Thar continue to lead demand, but supply alignment and inventory adjustments likely drove the decline.
5. Toyota – Steady Gainer
-
Aug’25 Sales: 29,302
-
YoY Growth: +2.5%
-
MoM Growth: +0.5%
-
Market Share: 8.9% (up 0.9%)
Toyota stood out as one of the few to post YoY and MoM growth. Strong performance of Innova Hycross and Hyryder hybrids kept momentum alive, helping it inch closer to a 9% market share.
6. Kia – Double-Digit Decline
-
Aug’25 Sales: 19,608
-
YoY Growth: -12.9%
-
MoM Growth: -11.4%
-
Market Share: 6.0% (down 0.4%)
Kia suffered on both YoY and MoM fronts, with Seltos and Sonet facing increased competition. Its market share slipped, reflecting pressure in compact SUV and MUV segments.
Rising Stars
MG Motor – Consistent Premium Growth
-
Aug’25 Sales: 6,578
-
YoY Growth: +43.9%
-
MoM Growth: -1.5%
-
Market Share: 2.0% (up 0.7%)
MG delivered another strong YoY gain, led by EVs and premium compacts. While MoM was marginally negative, its growth trajectory signals rising urban acceptance.
Skoda – Near 80% YoY Surge
-
Aug’25 Sales: 4,971
-
YoY Growth: +79.3%
-
MoM Growth: -10.5%
-
Market Share: 1.5% (up 0.7%)
Skoda nearly doubled volumes YoY, driven by renewed demand for the Slavia and Kushaq. Despite a MoM decline, its market share gains highlight sustained recovery.
Declining OEMs
-
Honda: 3,850 (YoY -27.7%, MoM -4.9%) → Struggling with an aging lineup.
-
VW: 2,719 (YoY -24.0%, MoM -15.3%) → Weak demand despite recent updates.
-
Renault: 3,015 (flat YoY, MoM +17.1%) → Slight MoM improvement but volumes remain modest.
-
Nissan: 1,384 (YoY -38.8%, MoM -2.5%) → Portfolio weakness continues.
-
Citroen: 403 (YoY -68.4%, MoM -18.4%) → Sales collapse with limited market penetration.
-
Jeep: 210 (YoY -38.2%, MoM -16.3%) → Ongoing volume pressure with no turnaround in sight.
Segment-Wise Market Trends
-
SUV Supremacy: SUVs continued to anchor volumes, with Creta, Scorpio, Nexon, and Brezza among the top performers.
-
Premium/Hybrid Growth: Toyota’s hybrid offerings and MG’s EVs underlined the shift toward premium, tech-driven cars.
-
Hatchback Slowdown: Entry-level hatchbacks remained subdued, hurting Maruti’s smaller models.
-
MPVs’ Importance: Ertiga, Carens, and Innova Hycross reaffirmed MPVs as key household choices.
Market Share Comparison (Aug’25 vs Aug’24)
| OEM | Aug’25 MS | Aug’24 MS | Change |
|---|---|---|---|
| Maruti Suzuki | 40.1% | 40.4% | -0.3% |
| Hyundai | 13.4% | 14.0% | -0.6% |
| Tata Motors | 12.5% | 12.5% | 0.1% |
| Mahindra | 12.0% | 12.2% | -0.2% |
| Toyota | 8.9% | 8.1% | +0.9% |
| Kia | 6.0% | 6.4% | -0.4% |
| MG | 2.0% | 1.3% | +0.7% |
| Skoda | 1.5% | 0.8% | +0.7% |
Conclusion and Outlook
August 2025 presented a broad-based slowdown, with overall volumes down both YoY and MoM. While Maruti retained dominance, Toyota, MG, and Skoda emerged as the clear winners in terms of share gains and growth. Hyundai and Tata managed stability, while Mahindra corrected sharply after a strong July.
A major policy development in August was the GST reform: the tax rate on small cars (under 4 meters) was reduced from 28% to 18%. This change translates into significant price cuts and discounts for entry-level hatchbacks and compact sedans. With affordability improving, it will be interesting to see how this tax benefit reshapes consumer demand, especially for Maruti, Hyundai, and Tata in the coming festive season.
Looking ahead, the festive months of September–October 2025 will be crucial. OEMs are expected to roll out aggressive promotions, new trims, and festive offers. Hybrids and EVs will gain further traction, while the SUV wave is unlikely to slow down. The combination of GST relief, seasonal demand, and new product launches could help the industry bounce back from August’s dip.
