Passenger vehicle dispatches from companies to dealers in the domestic market declined marginally year-on-year in July, hit by muted demand, industry body SIAM said on Thursday.

Passenger vehicle dispatches declined to 3,40,772 units in July, compared to 3,41,510 units in the same month last year.

"All vehicle segments posted stable performance in July 2025, though overall sentiments in the passenger vehicles segment have remained subdued," Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said in a statement.

Two-wheeler dispatches rose 9 per cent year-on-year to 15,67,267 units last month from 14,41,694 units in the year-ago period.

Scooter sales stood at 6,43,169 units last month, an increase of 16 per cent as compared with 5,53,642 units in July 2024, SIAM said.

Motorcycle dispatches to dealers rose 5 per cent year-on-year to 8,90,107 units in July.

Mopeds saw a dip of 9 per cent year-on-year to 33,991 units last month, as against the same period last year.

Three-wheeler dispatches to dealers saw an increase of 17.5 per cent year-on-year to 69,403 units in July as compared with 59,073 units in the year-ago period.

"With the advent of the festive season beginning with Onam festivities in the latter part of August, the Indian auto industry remains cautiously optimistic for the demand momentum to pick up in the coming months," Menon noted.

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