August 14th 2024.
In New Delhi, the passenger vehicle industry in India experienced a decline of 2.5% in the month of July compared to the same time last year. This was mainly due to the high base effect and the decision of companies to reduce vehicle dispatches to dealers amidst a slowdown in demand.
According to the Society of Indian Automobile Manufacturers (SIAM), the total number of passenger vehicles dispatched from companies to dealers in July 2023 was 3,50,355 units. This was a slight decrease from the previous year's numbers. However, utility vehicles continued to be the driving force behind the overall sales, with 1,88,217 units sold in July, a growth of 4.1% compared to the same period in 2023.
On the other hand, passenger cars saw a decline of 12% with only 96,652 units sold in July, as compared to 1,09,859 units in the previous year. Industry experts believe that after a rapid growth in the past couple of years, the demand for passenger vehicles has now stabilized. Additionally, Original Equipment Manufacturers (OEMs) also took steps to reduce inventory in the market, leading to a further decline in dispatches.
In terms of two-wheelers, the industry saw a 12.5% growth in wholesales, with 14,41,694 units sold in July compared to 12,82,054 units in July 2023. Motorcycles saw a growth of 4.1% with 8,50,489 units sold, while scooter sales increased by 29.2% with 5,53,642 units sold.
The three-wheeler segment also saw a rise of 5.1% with 59,073 units sold in July. However, SIAM President Vinod Aggarwal noted that while the two-wheeler and three-wheeler segments were performing well, there was a decline in the sales of passenger vehicles and commercial vehicles in July 2024 compared to the same period last year.
Aggarwal also mentioned the positive impact of the recent above-average rainfall and the upcoming festive season on the industry's growth in the short term. He added that the budget announcements focusing on overall economic growth and providing support to infrastructure and rural sectors would benefit the auto industry in the medium-term.
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