Passenger car sales shrink in July, SIAM bets on monsoon, festive demand

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.