The passenger vehicle sales for July saw a de-growth of 2.5 percent on year, at 3.41 lakh units, showed latest data from automotive body SIAM on August 14, likely due to a moderation in demand and adjustments owing to high inventory.
Three wheelers clocked a growth of 5.1% in July compared to last year, at 59,000 units, which is close to the peak of 2018-19, said SIAM. However, the two-wheeler segment registered a decent sales growth of 12.5% in July 2024 as compared to a year ago at 14.42 Lakh units. Within two-wheelers, scooters saw a robust 29.2 percent on year growth at 5.54 lakh units in July.
"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," said Vinod Aggarwal, President, SIAM.
The de-growth in passenger cars is likely due to a high base effect and companies reducing inventory to dealers. However, sale of utility vehicles continues to drive PVs, at 1.88 lakh units in July, growing by 4.1 per cent on year. This moderation is on the back of a rapid sales growth seen in the last couple of years.
Original Equipment Manufacturers (OEMs) too exercised stock corrections in July to trim pending inventories.
The above average rainfall along with upcoming festive season is expected to again drive growth in demand, said SIAM. "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," Vinod Aggarwal said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
