Market Overview

Passenger Vehicle Sales in India Drop 25% in July 2024

Market Overview

Passenger vehicle sales in India recorded a significant decline of 25% year-over-year (YoY) in July 2024.

In contrast, the utility segment witnessed a growth of 41% in the same period.

Three-wheeler sales also saw an increase, rising by 51%.

Reasons for Decline

• Rajesh Menon, Director General of SIAM, attributed the decline to a decrease in demand from fleet operators.
• Economic uncertainty and high input costs may have further contributed to the slowdown.
• The absence of new model launches and increased competition also played a role.

Market Segments

Passenger car segment declined by 12% YoY, selling 96,652 units in July 2024 compared to 109,859 units in July 2023.

Utility vehicles, including SUVs and MUVs, grew by 41% YoY, selling 188,217 units in July 2024 compared to 133,470 units in July 2023.

Three-wheelers witnessed a surge of 51% YoY, selling 59,073 units in July 2024 compared to 39,087 units in July 2023.

According to SIAM, the Indian automobile industry body, the decline in passenger vehicle segment in July 2024 was mainly driven by a drop in sales of passenger cars.

Outlook

Industry experts remain optimistic about the long-term growth prospects of the Indian automotive sector.

Government initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and the Production-Linked Incentive (PLI) scheme are expected to boost sales in the coming years.