Auto manufacturing receives a slight derailment in July 2024

Passenger Vehicle sales dwindled slightly, but auto manufacturing showed resilience in July 2024, with strong growth in the Two-Wheeler and Three-Wheeler segments. The industry adapts and eyes the festive season for renewed momentum.

The automotive sector witnessed active production of Passenger Vehicles, Three-wheelers, Two-wheelers, and Quadricycles, reaching 2,437,138 units in July 2024. This production figure captures the capabilities of the automotive manufacturing sector to serve domestic and international demands despite challenges in certain segments.

In July 2024, passenger vehicle sales stood at 341,510 units, reflecting a slight decline of 2.5 percent compared to July 2023. 59,073 three-wheelers were sold, marking a 5.1 percent increase over the previous year. Sales reached 1,441,694 units, showing a healthy growth of 12.5 percent for two-wheelers.

The Passenger Vehicle segment decreased due to external economic factors and market saturation in certain areas. The financial crunch and the expectations of subsidy extension in budget announcement further.

Passenger Carrier subsegment saw an 8.7 percent increase in sales. This growth can be linked to the sector’s adaptive manufacturing processes and the rise in demand for efficient urban transport solutions.

The two-wheeler segment has been a stronghold of the Indian auto industry and saw a substantial 12.5 percent growth. This increase was driven by a 29.2 percent rise in scooter sales compared to last July.

The auto manufacturing sector has shown remarkable adaptability, especially in the Two-Wheeler and Three-Wheeler segments, where production adjustments have met rising consumer demand. The sector’s ability to scale production efficiently amidst fluctuations in certain segments reflects its robust infrastructure and strategic planning.

Commenting on sales data of July 2024, Vinod Aggarwal, President, SIAM said, “Though Three-Wheeler and Two-Wheeler segments are performing well, there has been some growth of Passenger Vehicles and Commercial Vehicles in July 2024, compared to July 2023. The above-average rainfall and the upcoming festive season will again propel growth in the short term. In addition, enabling budget announcements emphasised overall economic growth with fiscal support for infrastructure and the rural sector should augur well for the Auto sector in the medium term.”

July 2024 portrayed the resilience and adaptability of the Indian automotive manufacturing sector. Despite challenges, the overall growth in production and sales, particularly in the Two-Wheeler and Three-Wheeler segments shows the strength in derailment. With the festive season approaching and supportive economic policies in place, the industry is looking towards continued growth in the coming months.