July’s automotive sales figures reveal a tale of contrasting fortunes. While the passenger vehicle segment showed little movement, the two-wheeler and three-wheeler categories experienced a surge in demand. This divergence suggests a market dynamic where entry-level and utility vehicles are thriving, while the premium segment faces headwinds.
Passenger vehicles saw a marginal dip in sales. Data from the Society of Indian Automobile Manufacturers (SIAM) indicates a 0.2% decline in passenger vehicle sales for July, totaling 3,40,772 units. This performance fell short of industry projections that anticipated a recovery. Historically, the car segment has been a key driver of growth, but it appears to be experiencing a pause. Automakers are now pinning their hopes on the upcoming festive season, particularly the Onam period, though consumer sentiment seems yet to fully rebound.
Scooters boosted the two-wheeler segment. The two-wheeler category witnessed an 8.7% increase in sales during July, reaching 15.67 lakh units. The scooter segment led this growth with a 16.2% rise in sales. Motorcycle demand also increased, up 4.7%, but moped sales continued their downward trend, declining by 10%. The strong performance of scooters underscores the sustained demand in both urban and rural markets.
Three-wheelers achieved record sales. The three-wheeler segment recorded its best-ever performance in July, with sales increasing by 17.5% to reach 69,403 units. Passenger carriers, goods carriers, and e-carts all saw substantial growth. However, e-rickshaw sales fell by 53%, revealing the challenges faced by electric mobility models.
Market Analysis. SIAM characterized July’s performance as ‘stable’ and expressed a positive outlook for the months ahead. However, the available data suggests that growth is primarily concentrated in the lower segments, with the premium and passenger car segments exhibiting signs of weakness.