Car sales in India to grow just 1-4% this year
India's passenger vehicle market is set for just 1-4% growth this year, says ICRA.
High inventory and last year's strong sales are making it tough for the industry to speed up.
From April to July 2025, wholesale car sales actually dipped by 1.1%.
Dealers are sitting on about 55 days' worth of cars
July saw a small boost—sales jumped nearly 9% from June thanks to festive stocking, but numbers stayed flat compared to last July.
Retail registrations were up month-on-month too, though slightly down from last year.
Dealers are sitting on about 55 days' worth of cars—so there's no shortage if you're shopping.
SUVs now make up about 2-thirds of all new cars
SUVs now make up about two-thirds of all new cars sold in India as more people want bigger rides.
Exports are a bright spot: Indian-made passenger vehicles shipped abroad rose 9% year-on-year in July.
Plus, with the government proposing to simplify GST tax slabs, there could be changes affecting car prices in the future.