Indias automobile retail experienced a modest YoY growth of just 0.73%. While the two-wheeler (2W) and three-wheeler (3W) segments registered positive YoY growths of 4.66% and 5.1% respectively, other categories such as passenger vehicles (PV), tractors (Trac) and commercial vehicles (CV) saw declines of 6.7%, 28.3%, and 4.7% YoY, respectively.
The two-wheeler category faced significant challenges, with a MoM sales decline of 10.36%, despite a 4.66% YoY increase. Factors such as extreme heat which resulted in 13% less walk-ins, stalled monsoons and election-related market slowdowns particularly affected rural sales, which fell from 59.8% in May to 58.6% in June.
Passenger vehicle sales experienced a notable decline, falling by 6.77% YoY and 7.18% MoM. Inventory levels have reached an all-time high, ranging from 62 to 67 days. Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to extreme heat resulting in 15% less walk-ins and delayed monsoons.
The commercial vehicle category also experienced a downturn, with sales decreasing by 4.74% YoY and 12.42% MoM. June presented various challenges, including delayed monsoons, poor market sentiment and postponed purchases due to low demand and funding delays
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