July Passenger Vehicle Wholesales Decline in India

Passenger vehicle wholesales in India fell by 2.5% in July 2024, totaling 341,510 units, as manufacturers reduced dispatches to manage high unsold inventory. Two-wheeler sales surged by 12.5% to 1,441,694 units, while three-wheeler sales rose by 5.1% to 59,073 units. This downturn in passenger vehicle sales follows a period of strong growth, with forecasts suggesting only a flat 0.8% increase for FY25. The decline is attributed to a high base effect and moderated demand, with passenger cars specifically experiencing a 12% drop. Analysts anticipate that above-average rainfall and the upcoming festive season may stimulate short-term growth, supported by government budget announcements aimed at economic enhancement. Overall, the auto sector is urged to adapt strategies to thrive in this cooler market environment.