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In keeping with the growth momentum, retail sales of automobiles in July posted a 10 per cent year-on-year (Y-o-Y) increase, with 1.77 million units sold, though they declined 5 per cent month-on-month (M-o-M) mainly due to heavy rain.
Three-wheelers took the lead with a record growth rate of 74 per cent Y-o-Y, according to the Federation of Automobile Dealers’ Associations (FADA).
However, except three-wheelers, which recorded 9 per cent growth, all other categories dipped M-o-M. Three-wheelers hit record sales in July at 94,148 units, surpassing the previous best of 86,857 units in March this year.
“It has been a good month. The best news is two-wheeler sales, which were lagging,” said Manish Raj Singhania, president, FADA.
“Three-wheelers have recorded a historic hike. M-o-M July is normally the leanest for us due to rain. We are seeing excessive precipitation.”
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Y-o-Y segments like two-wheelers, passenger vehicles (PVs), tractors, and commercial vehicles (CVs) grew 8 per cent, 4 per cent, 21 per cent, and 2 per cent, respectively. Compared to pre-Covid numbers, however, auto retail is down 13 per cent, with two-wheelers behind 23 per cent and commercial vehicles 4 per cent.
“Despite challenges like a heavy monsoon and a tilt towards electric vehicles (EVs) due to high fuel prices, two-wheelers showed resilience in July, with demand and trust in reputable brands increasing,” Singhania said.
The three-wheeler segment’s record numbers indicate the industry’s potential and a growing EV interest, he added. “Yet, addressing issues like OEM (original equipment manufacturer) support and dealer engagement remain crucial.”
In PVs, Maruti Suzuki’s sales increased 10 per cent from 106,689 in July last year to 117,571 units and number three player Tata Motors saw a 6 per cent rise. On the other hand, despite being number two, Hyundai Motors saw a 6 per cent dip in sales during the month.
In two-wheelers, Hero MotorCorp’s decrease in sales was lower than 1 per cent to 361,291 units.
However, Honda Motorcycle and Scooter India saw a 9 per cent increase during the period.
TVS Motor, on the other hand, saw an 18 per cent rise in sales to 213,101 units, mainly driven by the success of its EVs.
Bajaj Auto, on the back of the performance of three-wheelers, saw a 115 per cent rise in sales to 31,453 units during the month.
In CVs, market leader Tata Motors’ dip in sales was 6 per cent.
On the other hand, Mahindra and Mahindra saw a 2 per cent and Ashok Leyland an 8 per cent rise, respectively.
Sales of PVs in July were a mix of challenges and triumphs. Orders surged and OEM supplies were timely as new products were introduced. However, a severe monsoon and a flood-like situation, especially in North India, impacted sales. Sport utility vehicles continued to remain a popular choice, FADA added.
“The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school buses, challenges from erratic weather and high vehicle costs affected demand,” Singhania said.
“The boost to infrastructure projects, though, is a silver lining.”
