Domestic PV wholesales rise 2.6% in July; two-wheelers down 7.2%: Siam

Wholesales for passenger vehicles (PVs) reached an all-time high in July, showing a modest growth of 2.6 per cent compared with July 2022, driven by demand for utility vehicles (UVs). However, two-wheeler sales declined by 7.2 per cent year-on-year (Y-o-Y), with exports also taking a hit, experiencing a Y-o-Y decline of 15.6 per cent.

UV production experienced a 28.5 per cent growth in July, indicating a gradual resolution of the semiconductor crisis and improvements in the supply chain. Year-to-date production for UVs is up by 19 per cent for the period of April to July.

Vinod Aggarwal, president of Society of Indian Automobile Manufacturers (Siam), mentioned that although the PV and three-wheeler segments are performing well, there was a decline in two-wheelers in July 2023 compared with the same period last year.

“Overall, we expect the positive economic environment, good monsoons, and the upcoming festival season to support continuous growth in the automotive industry,” he added.

Rajesh Menon, director-general of Siam, stated that PV sales have reached an all-time high in July 2023. Three-wheeler sales grew by an impressive 78.9 per cent compared with the previous year, the second-highest growth in the month of July after the peak in 2018-19. “However, after experiencing growth for three consecutive months in this financial year, the two-wheeler segment faced a decline of minus 7.2 per cent in July 2023, compared with the previous year,” he said.

Within the PV segment, while UVs performed well with a 31.7 per cent Y-o-Y growth to 180,625 units, passenger car sales saw a decline of 23.4 per cent in July. Exports of both passenger cars and UVs increased; overall PV exports grew by 10.5 per cent in July. However, PV exports for the April-July period experienced a marginal decrease.

The decline in passenger car sales in July can be attributed to market leader Maruti Suzuki India (MSIL), which posted a 27 per cent Y-o-Y dip in sales. Conversely, in the UV segment, MSIL more than doubled its sales to 62,049 units, reflecting a remarkable growth of 166 per cent.

Tata Motors does not disclose a detailed breakdown of its monthly sales by segment, while Mahindra & Mahindra sold 36,205 UVs, showing a growth of 30 per cent.

In the two-wheeler category, Honda Motorcycle and Scooter India (HMSI) saw scooter sales skid 34 per cent. Suzuki Motorcycle India and India Yamaha Motor India performed well in the scooter category. Bajaj Auto, Hero MotoCorp, and HMSI observed a decline in motorcycle sales Y-o-Y, whereas Royal Enfield and TVS Motor Company managed to achieve Y-o-Y growth in motorcycle sales.

The three-wheeler segment continued its positive momentum, riding on the demand for passenger carriers, which almost doubled (97 per cent) to 44,311 units. Bajaj Auto’s sales of passenger-carrier three-wheelers doubled, accounting for 75 per cent of the total industry sales.