In August, domestic passenger vehicle wholesales experienced a slight decline of approximately 2% compared to the same period last year, as automotive companies deliberately slowed down vehicle dispatches to dealerships. This strategic move was aimed at reducing dealer inventories amidst a noticeable dip in market demand.
The Society of Indian Automobile Manufacturers (SIAM), an industry association, released data revealing that total passenger vehicle shipments within the domestic market dropped to 352,921 units in August, down from 359,228 units during the same month in 2023. This represented a decrease of 1.8%.
While the passenger vehicle segment faced a slowdown, the two-wheeler category showed a more positive trajectory. According to SIAM’s data, two-wheeler wholesales saw a significant 9% increase, rising to 17,11,662 units in August 2024, compared to 15,66,594 units sold during August 2023.
One of the key drivers of growth within the two-wheeler segment was scooter sales. The dispatches of scooters surged by 10% last month, reaching 606,250 units, compared to 549,290 units in August of the previous year. This robust growth indicates a rising consumer preference for scooters, likely driven by their convenience and fuel efficiency, particularly in urban areas where they are frequently used for short-distance travel.
Motorcycles, another important sub-segment of the two-wheeler market, also recorded solid gains in August. The dispatches of motorcycles from manufacturers to dealerships grew by 8%, reaching 10,60,866 units, up from 9,80,809 units during the corresponding period in 2023.
This increase reflects continued demand in the rural and semi-urban markets, where motorcycles are often a primary mode of transportation. The three-wheeler market, though smaller in scale, similarly demonstrated growth. Total sales of three-wheelers expanded by 8% last month, climbing to 69,962 units, compared to 64,944 units during August of last year.
This uptick may be attributed to increasing demand for commercial and public transport solutions, especially in tier-2 and tier-3 cities. Looking forward, the automotive sector in India is expected to witness a revival in the coming months, driven by the upcoming festive season. Traditionally, the festive period sees a surge in consumer spending, including on vehicles.
Additionally, recent policy initiatives from the Government of India, such as the PM E-DRIVE and PM-eBus Sewa Schemes, are anticipated to further bolster demand in the automotive market. Rajesh Menon, Director General of SIAM, noted that these government measures, aimed at promoting electric vehicles and improving public transportation, would likely provide additional momentum to the sector during this festive period.
