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Passenger vehicle wholesales in India declined 2.5 per cent year-on-year to 341,510 units in July, impacted by high base effect as well as companies reducing vehicle dispatches to dealers amid moderation in demand.
The overall passenger vehicle (PV) dispatches from companies to dealers stood at 350,355 units in July 2023, automobile industry body Siam said on Wednesday.
Utility vehicles continued to drive sales of PVs, clocking 188,217 units last month, as against 180,831 units in July 2023, a growth of 4.1 per cent, as per the data issued by the Society of Indian Automobile Manufacturers (Siam).
Passenger cars, however, recorded a drop of 12 per cent at 96,652 units, as against 109,859 units in the same month last year.
Industry observers pointed out that after high-paced growth witnessed in the past couple of years, the industry is witnessing moderation in demand.
Besides, Original Equipment Manufacturers (OEMs) also undertook stock corrections in July to reduce inventory in the network.
As per Siam data, two-wheeler wholesales grew by 12.5 per cent to 14,41,694 units last month, as compared to 12,82,054 units in July 2023.
Motorcycles wholesales were up 4.1 per cent at 8,50,489 units in July 2024, as against 8,17,206 units in the year-ago month, Siam said.
Scooters sales were up 29.2 per cent at 553,642 units last month, as against 428,640 units in the year-ago period.
Three-wheeler wholesales also rose 5.1 per cent to 59,073 units from 56,204 units in July last year.
"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," Siam president Vinod Aggarwal said in a statement.
He, however, said the above average rainfall coupled with upcoming festive season is likely to again propel growth in the short term.
"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," Aggarwal said.