Passenger vehicle sales lowest in two and a half years

Due to sluggish demand and high base effect, wholesale sales of passenger vehicles in the country declined by 2.5 percent year-on-year to 3,41,510 units in July 2024. This is its lowest level in about two and a half years since February 2022. At that time 3,02,965 passenger vehicles were sold. In July 2023, this figure was 3,50,355 units. According to data from the Society of Indian Automobile Manufacturers (SIAM), passenger car sales also declined by 12 percent to 96,652 units last month.

Two-wheelers up 12.5 percent

Wholesale sales of two-wheelers rose 12.5 percent to 14,41,694 units in July. In July 2023, 12,82,054 two-wheelers were sold. Three-wheeler sales grew 5.1 per cent to 59,073 units. Utility vehicle sales grew 4.1 per cent.

Commenting on the July 2024 sales figures, SIAM President Vinod Agarwal said, “Although the three-wheeler and two-wheeler segments are performing well, passenger vehicles and commercial vehicles have seen some decline in July 2024 as compared to July 2023.”

He added, “Above average rainfall and the upcoming festive season are likely to boost growth in the short term. Also, budget announcements emphasising overall economic growth with fiscal support for infrastructure and the rural sector bode well for the auto sector in the medium term.”

Interestingly, passenger vehicle sales are on the rise after witnessing a decline of over 112 per cent in May of the current year, as shown by SIAM data.