India’s passenger vehicle sales dip 1.8% in August, but two-wheeler sales surge 9.3% ahead of festive season: SIAM

India's total passenger vehicle (PV) sales fell 1.8 per cent to 352,921 units in August 2024, compared to 359,228 units in the same period the previous year, news agency ANI reported quoting data from the Society of Indian Automobile Manufacturers (SIAM) on Friday, September 13.

The automotive industry did not attribute any reason for the fall in passenger vehicle sales figures. According to the agency report, it is assumed that it was primarily due to excessive rainfall this monsoon combined with customers postponing their purchases for the festive season.

According to the report, Indian auto manufacturers have devised attractive festive season offers to boost demand and increase car sales.

According to SIAM data, the sales of three-wheelers and two-wheelers rose 7.7 per cent and 9.3 per cent to 69,962 units and 1,711,662 units.

“Looking ahead, as the country enters the festive season, demand for Vehicles is expected to grow, which will also be duly augmented by the recent announcements of PM E-DRIVE and PM-eBus Sewa Schemes of Government of India,” Rajesh Menon, director general at SIAM, said.

Union Cabinet approves PM E-Drive scheme

The Union Cabinet on Wednesday approved the PM E-Drive scheme, which aims to promote electric mobility in India. The scheme has a total fund investment goal of ₹10,900 crore over two years.

Subsidies or demand incentives worth ₹3,679 crore will be given to encourage electric two-wheelers, electric three-wheelers, e-ambulances, e-trucks, and other upcoming EV segments, ANI reported.

The scheme aims to support 24.79 lakh EV segment two-wheelers, 3.16 lakh three-wheelers, and 14,028 e-buses. According to the report, the Ministry of Heavy Industries is also set to introduce e-vouchers so EV buyers can take advantage of the demand incentives under the scheme.

The Cabinet also approved a scheme to manage the procurement and operation of e-buses by Public Transport Authorities (PTAs) with an investment goal of ₹3,435.33 crore, as per the report.

The PM-eBus Sewa-Payment Security Mechanism (PSM) scheme aims to support the deployment of over 38,000 e-buses from 2024-25 to 2028-29. Presently, the buses operated by the Public Transport Authorities (PTAs) run on diesel or CNG, which causes adverse environmental impacts, ANI reported.