The Indian automotive sector presented a mixed performance in July. While passenger vehicle sales remained relatively flat, the two-wheeler and three-wheeler segments experienced notable growth. This trend suggests a shift in consumer preferences and market dynamics.
Passenger vehicle sales saw a slight decrease. According to the Society of Indian Automobile Manufacturers, passenger vehicle sales in July fell by 0.2%, totaling 3,40,772 units. This result contrasts with earlier hopes for a recovery in the car segment. The industry is now looking towards the festive season, especially the sales that start with Onam, although the figures suggest that consumer interest is yet to pick up.
Two-wheelers were buoyed by scooter sales. The two-wheeler segment experienced an 8.7% increase in July sales, reaching 15.67 lakh units. The scooter segment demonstrated the fastest growth with sales up by 16.2%. Motorcycle demand grew by 4.7%, while moped sales continued to decline, falling by 10%. The strong performance of scooters shows continued demand in urban and rural areas.
Three-wheelers achieved record performance. The three-wheeler segment achieved its best performance in July, with sales increasing by 17.5% to 69,403 units. There was a significant rise in passenger carriers, goods carriers, and e-carts. However, sales of e-rickshaws declined by 53%, highlighting the current instability of electric mobility models.
Market Outlook. SIAM described July’s performance as “stable” and offered an optimistic view of future months. However, the current data shows that growth is limited to the lower segments, while the premium and passenger car segments have seen a slowdown.