July Sees 2.5% Decline In Domestic Passenger Vehicle Wholesales: SIAM

Despite the overall decline, utility vehicles remained a strong performer, with sales reaching 1,88,217 units last month. This represents a 4.1 per cent increase compared to the previous year 

Passenger vehicle wholesales in India experienced a decline of 2.5 per cent year-on-year (YoY) at 3,41,510 units in July. This decrease in number was influenced by a high base effect from the previous year as well as a reduction in vehicle dispatches to dealers due to a slowdown in demand.

According to the Society of Indian Automobile Manufacturers (SIAM) data released on Wednesday, the total passenger vehicle (PV) dispatches from manufacturers to dealers stood at 3,50,355 units in July 2023, reflecting the overall trend in the automotive sector.

Despite the overall decline, utility vehicles remained a strong performer, with sales reaching 1,88,217 units last month. This represents a 4.1 per cent increase compared to the 1,80,831 units recorded in July 2023. 

Passenger cars experienced a significant 12 per cent decline, falling to 96,652 units in July from 1,09,859 units in the same month last year. Industry observers attribute this drop to a moderation in demand following a period of rapid growth over the past few years. Additionally, Original Equipment Manufacturers (OEMs) undertook stock adjustments in July to manage inventory levels more effectively.

According to SIAM data, two-wheeler wholesales increased by 12.5 per cent to 14,41,694 units last month compared to 12,82,054 units in July 2023. Within this segment, motorcycle wholesales rose by 4.1 per cent to 8,50,489 units in July 2024, up from 8,17,206 units in the previous year. Scooters saw a notable increase of 29.2 per cent, with sales reaching 5,53,642 units compared to 4,28,640 units in the same period last year.

Three-wheeler wholesales also grew, rising 5.1 per cent to 59,073 units from 56,204 units in July of the previous year.

"Though three-wheeler and two-wheeler segments are performing well, there has been some de-growth of passenger vehicles and commercial vehicles in July 2024, compared to July 2023," SIAM President Vinod Aggarwal said in a statement.

He noted that the above-average rainfall, combined with the approaching festive season, is expected to drive growth in the short term.

"In addition, enabling budget announcements which emphasise on overall economic growth with fiscal support for infrastructure and rural sector should augur well for the auto sector in the medium-term," Aggarwal said.