Something surprising just happened in the Indian car market. For a long time, SUVs have been the most popular cars, and the Hyundai Creta was the king of sales. But in July 2025, that changed. The Maruti Suzuki Dzire, a smaller and more affordable sedan, sold more cars than anyone else, with 20,895 cars sold.1
This isn’t just a one-time thing. It could be a major turning point for the Indian car market. It shows that with money being tight for many people, practical things like good mileage and a low price are becoming more important again.2 The Dzire’s win shows that sedans are still very popular.
This report will explain what happened with car sales in July 2025. We’ll look at why the Maruti Dzire did so well, how the Hyundai Creta is holding up, and what’s happening with other big companies like Mahindra and Tata Motors. Most importantly, we’ll explain what these changes mean for you if you’re thinking about buying a car.
The Scorecard: India’s Top 10 Selling Cars in July 2025
First, let’s look at the numbers. This list shows which cars sold the most in July 2025.
Top 10 Best-Selling Car Models in India (July 2025)
| Rank | Model (Manufacturer) | Units Sold (July 2025) |
| 1 | Maruti Suzuki Dzire | 20,895 |
| 2 | Hyundai Creta | 16,898 |
| 3 | Maruti Suzuki Ertiga | 16,604 |
| 4 | Maruti Suzuki Wagon R | 14,710 |
| 5 | Maruti Suzuki Swift | 14,200 |
| 6 | Maruti Suzuki Brezza | 14,100 |
| 7 | Mahindra Scorpio (N + Classic) | 13,800 |
| 8 | Maruti Suzuki Fronx | 12,900 |
| 9 | Tata Nexon | 12,855 |
| 10 | Maruti Suzuki Baleno | 12,600 |
As you can see, Maruti Suzuki is doing incredibly well. Seven of the top ten cars are from Maruti.4 This shows they have a car for almost every type of buyer.
What’s interesting is that the top three cars are all different types: a sedan (Dzire), an SUV (Creta), and an MPV (Ertiga). This tells us that Indian buyers have different needs and aren’t only buying SUVs.2 Another big surprise is that the Tata Punch, which was a top seller in 2024, is not on this list at all.1
How the Maruti Dzire Won: 4 Big Reasons
The Maruti Dzire’s success wasn’t an accident. It happened because of a smart plan that fit perfectly with what car buyers in India need right now. Here are the four main reasons it became number one.
The CNG Advantage: Beating High Gas Prices
With gas prices going up, many people are looking for ways to save money. Maruti’s focus on cars that run on CNG (Compressed Natural Gas) has been a huge success.1 Between April and July 2025, Maruti sold over 52,000 CNG cars.1
The Dzire is a big part of this. A large number of Dzire buyers choose the CNG model because it saves them money on fuel.2 The Dzire CNG gets amazing mileage of about
33.73 km/kg.3 For many families watching their budget, this is a huge selling point. It shows that the total cost of owning a car (including fuel and maintenance) is more important to many people right now than just having a stylish SUV.
The Best Value: An Affordable Car in a Pricey Market
The Dzire is known for being a great value. It has a good starting price of Rs 6.84 lakh (ex-showroom) and gets tax benefits because of its size, which helps keep the price down.2 This is especially important now because new safety rules, like needing six airbags, have made all cars more expensive.8
The Dzire’s affordable price gives it a big advantage. In July, there were also special deals that made it even cheaper. For example, one website was offering a discount of Rs 64,000 on the Dzire, which likely helped convince a lot of people to buy it.10
The Small-Town Favorite: Popular Outside Big Cities
The Dzire is extremely popular in India’s smaller towns and rural areas. About 42% of all Dzire sales come from these places.2 In these areas, people trust the Maruti brand and know they can easily find a service center nearby.
Buyers in smaller towns often care more about practical things like great mileage and low repair costs than having the latest technology.2 The Dzire is perfect for them. While the Hyundai Creta is popular with city buyers who want lots of features, the Dzire’s success shows that the needs of buyers in smaller towns are just as important for becoming a top seller in India.1
The Taxi Business: A Secret Strength
We also need to remember that many Dzire cars are used as taxis. Maruti sells a special version called the Dzire Tour S just for taxi companies and drivers.3
This model is simple, reliable, and very cheap to run, especially the CNG version. By selling to both regular families and taxi businesses, Maruti makes the Dzire available to a much larger group of customers. If you look on the roads, you’ll see many Dzire taxis, which helps explain why it sells in such high numbers every month.11
The SUV King Is Still Strong: Don’t Count Out the Hyundai Creta
Even though the Dzire took the top spot, the Hyundai Creta is still doing very well. Its slip to second place doesn’t mean it’s failing.
Still the #1 SUV
First, the Creta’s sales actually went up in July, from 15,786 in June to 16,898.1 The Dzire just had an exceptionally good month. The Creta is still the
#1 best-selling SUV in India, and it’s not even close.1
Looking at the whole year, the Creta has been the best-selling car in India from January to July 2025, with over 117,000 sold.12 This shows how incredibly popular it has been for a long time. Hyundai is even celebrating the Creta’s 10th anniversary, having sold over 1.2 million of them in the last decade.15
Facing More Competition
However, the Creta is facing more competition than ever before. Maruti has launched several of its own SUVs, like the Brezza and Fronx, which are taking some of Creta’s customers.1
This shows a potential issue for Hyundai. If you look at the top 10 list, the Creta is the only Hyundai car on it.1 This means the company depends heavily on this one model. If the Creta’s sales were to drop, it would be a big problem for Hyundai’s overall position in the market.
Other Big Fights: Mahindra’s Rise and Tata’s Struggles
Besides the Dzire and Creta, there were other important changes in the car market in July. Mahindra had a great month, while Tata Motors had some problems.
Mahindra’s Powerful SUVs
Mahindra had a fantastic month, with its SUV sales growing by 20% compared to last year.17 The
Mahindra Scorpio was its star performer, landing at #7 on the top sellers list with 13,800 cars sold.1
The Scorpio is loved for being tough, strong, and able to handle any road, which makes it very popular in rural India.1 Its success shows that many buyers still want a powerful and reliable vehicle, and Mahindra is the expert in that area.
Tata’s Mixed Results: Regular Cars Down, Electric Cars Up
Tata Motors’ situation is interesting. Its regular petrol and diesel cars are struggling. The Tata Nexon, which used to be the best-selling SUV, is now down at #9.1
Even more surprising, the Tata Punch, which was the #1 selling car in all of India in 2024, has completely fallen off the top 10 list.1 This is likely because the Punch hasn’t been updated in a while, and newer cars from other brands are more appealing.1 Some customers have also complained about Tata’s service quality.21
But that’s not the whole story. While its regular cars are down, Tata’s electric cars (EVs) are selling better than ever. In July, Tata’s EV sales went up by an amazing 42% compared to last year, with a record 7,124 electric cars sold.22 It seems Tata is focusing its energy and money on becoming the leader in electric cars, even if it means its petrol and diesel car sales suffer for a while. It’s a big bet on the future of the car market.
The Big Picture: A Slow Market Hopes for a Festive Boost
The battles between car models happened while the overall car market was slow. It’s important to understand this bigger picture.
The Market Is Slowing Down
Right now, the Indian car market is not growing very fast. Sales were weak in the first few months of the year, and June had the lowest sales in 18 months.19 There are a few reasons for this:
- Cars Are More Expensive: Prices have gone up because of new rules and general inflation, making it harder for people to afford a new car.8
- Slower Sales in Rural Areas: The growth in car sales in rural areas has slowed down a lot, which hurts the sales of cheaper, entry-level cars.8
- City Buyers Are Hesitant: In big cities, some people are worried about their jobs and the economy, so they are waiting to buy expensive things like cars.8
Hopes for the Festive Season
Because of these challenges, car companies are really hoping for a big sales boost during the upcoming festive season (from Onam and Ganesh Chaturthi to Diwali). This time of year usually accounts for 30-40% of all car sales.2 Companies are already seeing some good signs, with bookings for new cars increasing in some areas.2
Everyone is hoping that good monsoon rains will help farmers earn more money, new car launches will get people excited, and the festive mood will encourage everyone to spend more.8 This period is the industry’s best chance to bounce back.
What This Means for You: A Simple Guide for Car Buyers
All this information can help you make a smart decision if you’re looking to buy a car. Here’s what these trends mean for you:
- Are Sedans Making a Comeback?The Dzire’s success shows that saving money on fuel is very important right now. You can expect to see more cars with great mileage, like CNG and hybrid models, from all companies. This gives you more options to lower your daily travel costs.
- The SUV Fight Will Get More Intense.The tough competition among SUVs is great for you as a buyer. With so many brands fighting for your business, you can expect better prices, more features, and great discounts on popular SUVs like the Creta, Seltos, and Nexon. Be ready to bargain for a good deal.
- What to Do About Tata?If you’re thinking about a Tata Punch, you have a choice to make. You might find good discounts on the current model now since sales are down. However, a new and improved version of the Punch is expected to launch later this year.1 You’ll have to decide if you want to buy now for a lower price or wait for the new model.
- Get Ready for Festive Deals.The next few months will likely be the best time to buy a car this year. Companies will be offering big discounts, exchange bonuses, and special deals to increase their sales during the festive season. If you’re in the market for a new car, keep an eye out for these offers.