India’s Car Sales Stall: Major Automakers See Wholesale Decline in Slow Q1 Demand
India’s top automakers—including Maruti, Hyundai, and Tata—report significant wholesale declines in Q1 FY26. Learn the market trends, underlying causes, and expectations for recovery
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The April–June 2025 quarter revealed a notable slowdown in India’s passenger vehicle demand, with wholesale figures dipping across key manufacturers. Maruti Suzuki, the nation’s leading carmaker, saw a 6% decline in shipments—dispatching approximately 390,000 units, compared to 420,000 in the prior-year quarter. Hyundai India registered an even steeper fall of 12%, while Tata Motors’ wholesale volumes dropped by around 10% over the same period.
Despite this industry-wide dip, Mahindra & Mahindra and Kia Motors bucked the trend thanks to the strength of their newly launched models.
However, caution remains high among manufacturers. Maruti’s plans to invest ₹35,000 crore in a new Gujarat factory have been deliberately paced due to enduring demand fragility. Hyundai’s COO, Tarun Garg, attributed the weak sentiment to global geopolitical tensions, though he remains cautiously optimistic about eventual recovery.
Tata Motors’ Shailesh Chandra echoed the sentiment, noting persistent volume pressures in May and June, highlighting a generally flat growth trajectory.
Overall, the Indian auto industry's wholesales reflect a cautious consumer mindset amid economic uncertainties. With the monsoon around the corner and potential interest rate movements, manufacturers are closely watching macro headwinds for signs of recovery.India car sales Q1 FY26, Maruti Suzuki wholesale decline, Hyundai India 12% fall, Tata Motors volume drop, slow auto demand India, Q1 auto shipments India, Mahindra M&M dispatch growth, Kia Motors new models
