The Indian automobile industry posted mixed performance in June 2025, as shown in the latest month-on-month (MoM) sales data across various segments—tractors, two-wheelers, passenger vehicles, and commercial vehicles.
While tractor sales surged dramatically, led by VST Tillers and Escorts Kubota, passenger vehicle and commercial vehicle segments faced subdued demand due to weak urban sentiment and inventory corrections.
This article provides a comprehensive breakdown of auto sales in June 2025, including analysis of company-specific performance, market trends, reasons behind the numbers, and what to expect moving forward.
Summary of Auto Sales in June 2025
| Company | May ’25 Sales | June ’25 Sales | Change (%) |
|---|---|---|---|
| VST Tillers Tractors | 3,486 | 7,149 | +105.1% |
| Escorts Kubota | 10,675 | 11,832 | +10.8% |
| Hero MotoCorp | 5,07,701 | 5,53,963 | +9.1% |
| M&M (Auto + Tractor) | 1,24,753 | 1,32,361 | +6.1% |
| Hyundai Motor India | 58,701 | 60,924 | +3.8% |
| Eicher Motors | 96,831 | 96,903 | +0.1% |
| Ashok Leyland | 15,484 | 15,333 | -1.0% |
| Tata Motors | 70,187 | 67,475 | -3.9% |
| Bajaj Auto | 3,84,621 | 3,60,806 | -6.2% |
| Maruti Suzuki | 1,80,077 | 1,67,993 | -6.7% |
Tractor Segment: Stellar Growth Driven by Rural Recovery
1. VST Tillers Tractors – +105.1% MoM Growth
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May ’25 Sales: 3,486 units
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June ’25 Sales: 7,149 units
A remarkable doubling of sales compared to May 2025, thanks to improved monsoon progression and early sowing activities in key agricultural regions.
2. Escorts Kubota – +10.8% MoM Growth
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Continued growth driven by demand from northern and central India.
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Good financing schemes and favorable Kharif crop expectations helped.
3. Mahindra & Mahindra (M&M) – +6.1% MoM Growth
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Tractor division benefited from government push for farm mechanization.
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Growth also supported by higher penetration in semi-urban and Tier 2–3 markets.
Takeaway: The tractor segment saw the highest MoM growth, thanks to the timely arrival of monsoons, higher sowing activity, and rural credit availability.
Two-Wheelers: Recovery Continues, Hero Outperforms
1. Hero MotoCorp – +9.1% MoM Growth
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Strong demand in rural and semi-urban areas.
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Scooter and commuter bike segments contributed the most.
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Product refreshes in the entry-level range helped sustain demand.
2. Bajaj Auto – -6.2% MoM Decline
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Domestic demand stable, but export volumes faced headwinds.
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Impacted by weak African and Latin American demand for entry-level motorcycles.
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Some pressure on inventory movement at dealership level.
Two-wheeler market outlook: While Hero MotoCorp leads the segment, Bajaj’s struggle reflects the impact of slowing exports and price-sensitive rural demand.
Passenger Vehicles: Mixed Performance
1. M&M – +6.1% MoM Growth
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Strong performance in SUV segment with Scorpio-N, XUV700, and Bolero Neo.
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Long waiting periods for popular models suggest robust order books.
2. Hyundai Motor India – +3.8% MoM Growth
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Creta and Verna continue to lead in their respective categories.
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Compact SUVs and hybrid variants gaining traction.
3. Maruti Suzuki – -6.7% MoM Decline
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Sales fell despite demand in compact segment.
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Inventory rationalization and plant maintenance schedules affected dispatches.
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Lack of a strong presence in premium SUV space a key drag.
4. Tata Motors (PV Segment) – -3.9% MoM Decline
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Nexon and Punch continue to lead EV sales, but overall dispatches declined.
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Inventory correction and macro caution slowed demand.
Overall insight: While SUVs continue to dominate buyer preference, Maruti Suzuki and Tata Motors saw declining MoM figures. M&M gained the most in the passenger vehicle space.
Commercial Vehicles: Pressure Continues
1. Ashok Leyland – -1.0% MoM Decline
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Subdued fleet replacement activity.
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Freight rates remained flat to negative across regions.
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Demand from construction and logistics remained steady but not robust.
2. Eicher Motors (CV Division) – +0.1% MoM Growth
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Maintained steady volumes.
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Growth led by light and medium commercial vehicle sales.
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Higher demand from the e-commerce logistics sector in urban clusters.
Observation: The CV segment continues to be under pressure amid rising interest rates, cautious fleet expansion, and softer rural infrastructure demand.
Segment-Wise Performance Summary
| Segment | Leading Companies | Key Highlights |
|---|---|---|
| Tractors | VST, Escorts, M&M | Strong double-digit MoM growth |
| Two-Wheelers | Hero MotoCorp | Rural demand revival; exports weak |
| Passenger Vehicles | M&M, Hyundai | SUV dominance; Maruti under pressure |
| Commercial Vehicles | Eicher, Ashok Leyland | Flat demand; replacement cycle delayed |
Factors Influencing June 2025 Auto Sales
1. Timely Monsoon Onset
Monsoon rains arrived on schedule in most parts of India, boosting rural income expectations and tractor sales.
2. Rural Revival
Higher minimum support prices (MSP) and strong agri-output in FY25 supported two-wheeler and tractor purchases.
3. Fuel Price Stability
Moderate fuel prices supported personal mobility trends in both urban and rural areas.
4. Inventory Normalization
Several OEMs, especially Maruti and Tata Motors, focused on rationalizing dealership inventory after an aggressive pre-summer push.
5. Export Challenges
Bajaj Auto and Tata Motors faced headwinds from weak export demand in Africa, Latin America, and parts of Southeast Asia.
Outlook for July 2025 and Beyond
1. Positive Signs for Rural Markets
With sowing activities peaking and the rural economy showing signs of strength, tractor and two-wheeler segments may continue to perform well.
2. Cautious Optimism in Passenger Vehicles
SUVs are expected to drive growth, especially for companies like M&M and Hyundai. Maruti’s recovery depends on dispatch volumes and SUV ramp-up.
3. Electric Vehicles in Focus
July may see stronger EV sales as Tata Motors and M&M continue to dominate the affordable EV space. Expect new launches in the ₹10–15 lakh bracket.
4. Festive Stocking to Begin
Dealers may begin initial stocking in anticipation of the Onam season (August) in Kerala and Raksha Bandhan-Dussehra in September.
Stock Market Implications
Positive Sentiment
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Hero MotoCorp, VST Tillers, and Escorts Kubota may see strong investor interest due to sales momentum.
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M&M remains a key pick due to strength across PV, CV, and farm equipment.
Neutral to Negative Outlook
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Bajaj Auto and Maruti Suzuki could face short-term pressure from declining sales and export volatility.
Company Highlight: Hero MotoCorp
Hero MotoCorp, India’s largest two-wheeler manufacturer, reported a 9.1 percent month-on-month growth in June 2025, with total sales at 5,53,963 units. The growth was driven by:
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Strong demand for commuter bikes like Splendor and HF Deluxe
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Increased traction in rural areas
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Launch of updated scooters and aggressive marketing in Tier 2–3 cities
The company continues to maintain leadership despite intense competition and macro uncertainty.
Company Info:
Visit Hero MotoCorp for corporate updates, investor information, and product launches.
Conclusion
The June 2025 auto sales data underscores a clear divide in performance across segments. Tractor and two-wheeler sales led by rural growth, while passenger vehicles saw mixed performance and commercial vehicles remained flat.
As monsoons progress and festival season approaches, the sector is poised for recovery in the coming months. Investors and analysts will closely monitor production trends, inventory levels, and rural indicators to gauge momentum across sub-sectors.
