Passenger vehicle sales drop 2.5% in July amid moderation in demand, says SIAM report

Passenger vehicle wholesales in India fell by 2.5% year-on-year to 3,41,510 units in July, according to data released by the Society of Indian Automobile Manufacturers (SIAM). The decline was attributed to a high base effect from the previous year and a reduction in vehicle dispatches by companies amid moderating demand.

Despite the overall dip, utility vehicles continued to perform well, with sales growing by 4.1% to 1,88,217 units in July 2024, up from 1,80,831 units in July 2023. However, passenger cars saw a significant drop, with sales decreasing by 12% to 96,652 units, compared to 1,09,859 units in the same month last year.

Industry experts noted that after the rapid growth of the past few years, the sector is now experiencing a slowdown in demand. Additionally, Original Equipment Manufacturers (OEMs) took steps to correct stock levels in July to manage inventory within their networks.

In contrast to the decline in passenger vehicles, two-wheeler wholesales saw a notable increase, growing by 12.5% to 14,41,694 units in July, up from 12,82,054 units in July 2023. Motorcycles posted a modest growth of 4.1%, with 8,50,489 units sold compared to 8,17,206 units in the previous year. Scooter sales surged by 29.2% to 5,53,642 units from 4,28,640 units in July last year.

Three-wheeler sales also experienced growth, rising by 5.1% to 59,073 units, up from 56,204 units in July 2023.

SIAM President Vinod Aggarwal acknowledged the mixed performance across different vehicle segments, highlighting the decline in passenger and commercial vehicles. He expressed optimism for the short term, noting that above-average rainfall and the upcoming festive season could drive growth. He also pointed to budget announcements focused on infrastructure and rural development as positive factors for the auto sector’s medium-term outlook.