Home / Auto News / Passenger vehicle wholesales down nearly 4% in July

Domestic passenger vehicles wholesale dropped 3.86% year-on-year (y-o-y) to 1,82,779 units in July, as per data released by Society of Indian Automobile Manufacturers (SIAM) on Tuesday. The decline was cushioned by rise in demand for entry-level cars and motorcycles in the rural and semi-urban markets.

The narrow decline in sales comes as a result of low base in the corresponding period when auto makers witnessed contraction in consumer demand as a consequence of the economic slowdown and increase in vehicle prices due to change in emission and safety norms.

Factory dispatches of passenger cars during the period declined 12% y-o-y to 1,02,773 units, while dispatches of utility vehicles grew 13.88% y-o-y to 71,384 units.

Automobile sales in India are counted as factory dispatches and not retail sales.

Maruti Suzuki reported a 1.8% y-o-y growth in domestic wholesale to 1,00,000 units in July. Factory dispatches improved significantly from June and May when the company sold 51,274 and 13865 units respectively.

Hyundai Motor India Ltd – country’s second largest passenger vehicle manufacturer – witnessed a 2% y-o-y decline in domestic wholesales to 38,200 units.

With retail sales picking up after the removal of the lockdown in May, most manufacturers are trying to ramp up the production to meet the demand. However, rise in covid-19 cases and lack of availability of manpower have limited the ability of auto makers to increase production.

The pandemic has exacerbated the woes of India’s auto sector, which was already battling liquidity crunch and reduced demand over the last year and half.

“After few consecutive of months of decline in sales in a post-covid scenario, there are signs of green-shoots in passenger vehicles and two-wheelers, where the year-on-year de-growth is much lesser than the previous months. The sales numbers in the month of August would indicate, if this is a sustainable demand and not just a pent-up demand," said Rajan Wadhera, president, SIAM.

In the two-wheeler segment, scooter sales fell by 36.51% y-o-y to 3,34,288 units while motorcycles sales declined marginally by 4.87% to 8,88,520 units. Overall, two-wheeler sales fell 15.24% to 12,81,354 units.

Siam did not provide wholesale dispatches of commercial vehicle during the month.

“The month of July was significantly better than the preceding months and it instilled some confidence into the industry. Many OEMs have registered improved sales vis-à-vis the past few months, and this brings back a sentiment of resolve to the sector," said Rajesh Menon, director general, SIAM.

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