July’s auto sales figures painted a picture of uneven performance. The passenger vehicle segment experienced a near standstill, while the two-wheeler and three-wheeler categories showed robust growth. This divergence suggests that the market is experiencing a shift in consumer behavior and segment strength.
Passenger vehicles saw a slight downturn. Data from the Society of Indian Automobile Manufacturers (SIAM) indicates a 0.2% decrease in passenger vehicle sales for July, reaching 3,40,772 units. This result was unexpected by an industry that had hoped for recovery. While cars have traditionally driven growth, there appears to be a slowdown. Auto manufacturers are now focusing on the sales driven by the upcoming festive season, which starts with Onam. However, the current numbers show that consumer enthusiasm is still building.
Two-wheelers got a boost from scooter sales. The two-wheeler segment saw an 8.7% increase in sales during July, totaling 15.67 lakh units. Scooters led the charge with a 16.2% increase in sales. Motorcycle demand also rose, up 4.7%, but moped sales continued to decline, falling by 10%. The strong performance of scooters clearly reflects enduring demand in both urban and rural markets.
Three-wheelers hit a new high. The three-wheeler segment achieved its best performance in July, with sales increasing by 17.5% to 69,403 units. Passenger carriers, goods carriers, and e-carts all saw substantial gains. However, e-rickshaw sales declined by 53%, revealing the current challenges facing electric mobility models.
Sector Analysis. SIAM assessed July’s performance as “stable” and provided an encouraging outlook for the coming months. However, the latest data indicates that growth is primarily within the lower segments, while the premium and passenger car segments are experiencing a slowdown.