Passenger vehicle sales drop 2.5% in July; festive boost anticipated

The total domestic passenger vehicle (PV) sales in India saw a 2.5% decline in July 2024 compared to the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday. In July 2024, PV sales stood at 3,41,510 units, down from 3,50,355 units in July 2023.

The passenger car segment experienced a significant drop, with sales decreasing by 12% to 96,652 units, compared to 1,09,859 units in July 2023. The vans segment also recorded a slight decline of 1% year-on-year.

The decrease in PV sales is attributed to moderated demand. Rajesh Menon, Director General of SIAM, noted that while passenger vehicles saw a decline, the three-wheeler segment grew by 5.1%, with sales reaching 59,073 units, nearing the peak levels of 2018-19. The two-wheeler segment also showed positive growth, rising 12.5% year-on-year to 14.42 lakh units.

Vinod Aggarwal, President of SIAM, acknowledged the downturn in passenger and commercial vehicle sales but expressed optimism for the future. He pointed to above-average rainfall and the upcoming festive season as potential drivers of short-term growth, along with supportive government policies that focus on economic growth, infrastructure, and the rural sector.

SIAM’s data also revealed that while domestic PV sales declined, exports rose by 3.9%, with 61,929 units exported in July 2024 compared to 59,594 units in July 2023. However, some segments, such as three-wheeler goods carriers and e-rickshaws, experienced a slowdown, with sales dropping by 5% and 17.9%, respectively, compared to the previous year.