The Indian automobile industry experienced a varied performance in July 2024, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM). While the industry witnessed significant growth in certain segments, others showed signs of stagnation or decline, reflecting the complex dynamics at play in the market.
Production & Domestic Sales
In July 2024, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 24,37,138 units, reflecting a healthy pace of manufacturing across the industry. However, the domestic sales data painted a more nuanced picture, with some segments outperforming others.
Passenger vehicle sales saw a decline of 2.5%, with 3,41,510 units sold in July 2024 compared to 3,50,355 units in July 2023. This drop is attributed to a decrease in the sales of passenger cars, which fell by 12%, and a slight dip in the sales of vans. Utility vehicles, however, bucked the trend with a 4.1% increase in sales, indicating sustained consumer interest in this category.
In contrast, the two-wheeler segment displayed growth, with a 12.5% increase in sales, rising from 12,82,054 units in July 2023 to 14,41,694 units in July 2024. This surge was largely driven by a 29.2% jump in scooter sales, reflecting a growing preference for this mode of transport among Indian consumers. Motorcycle sales also contributed positively, with a modest 4.1% increase.
Three-wheelers registered a 5.1% growth in domestic sales, climbing from 56,204 units in July 2023 to 59,073 units in July 2024. This increase was primarily driven by the passenger carrier segment, which grew by 8.7%. However, the goods carrier and e-rickshaw segments saw declines, suggesting a mixed outlook within the three-wheeler market.
Exports Performance
On the export front, the industry experienced a 6.8% growth, with 4,14,631 units exported in July 2024 compared to 3,88,134 units in the same period the previous year. The increase in exports was primarily supported by the strong performance of utility vehicles and two-wheelers, which saw export growth of 38.9% and 7.8%, respectively.
Year-to-Date Performance (April-July 2024)
Looking at the cumulative data from April to July 2024, the industry has seen a 16.8% increase in total production, rising from 83,37,506 units in the same period last year to 97,35,722 units. Domestic sales during this period grew by 9.5%, while exports increased by 13.2%.
Passenger vehicles recorded a modest 4.6% growth in production and a 1.8% increase in domestic sales during the first four months of the fiscal year. In contrast, the three-wheeler and two-wheeler segments demonstrated more substantial growth, with production increases of 8.5% and 20%, respectively.
The upcoming festive season and favourable economic policies are expected to provide a boost to the industry in the near term, although ongoing challenges such as weather conditions and supply chain issues may continue to affect overall performance. The industry remains hopeful that these factors will help propel growth and stabilize the market in the coming months.
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