Auto sales continue to slide in July

The domestic passenger car sales declined by 12 per cent year-on-year (YoY) in July to 1,02,773 units versus 1,16,814 units in the corresponding month last year, said the latest report from the Society of Indian Automobile Manufacturers (SIAM).

However, the utility vehicles (UV) segment grew by 14 per cent YoY to 71,384 units during the month as against 62,681 units in July last year. This was led by new launches such as Hyundai Creta, and robust demand for Kia Seltos, Maruti Vitara Brezza and Hyundai Venue, the report released on Tuesday showed.

Segment wise, total passenger vehicles declined by around four per cent to 1,82,779 units during the month as compared with 1,90,115 units in July last year.

In the two-wheeler segment, the total sales were recorded at 12,81,354 units in July, down 15 per cent as against 15,11,717 units in July 2019.

While scooter sales declined by 36 per cent YoY to 3,34,288 units (against 5,26,504 units) during the month, the motorcycle sales declined by around five per cent YoY to 8,88,520 units (against 9,34,021 units), the SIAM data said.

All eyes on August data

According to SIAM, compared to the last few months things are now looking up for the industry and it is now waiting for August sales numbers to see the exact change in the market, as the festive season kicks off this month.

“After few consecutive months of plummeting sales in a post-Covid scenario, there are signs of green shoots in passenger vehicles and two-wheelers, where the YoY de-growth is much lesser than in the previous months. The sales numbers in August would indicate, if this is a sustainable demand and not just a pent-up demand,” said Rajan Wadhera, President, SIAM.

Production of vehicles has also increased compared to the last two months.

“The month of July was significantly better than the preceding months and it instilled some confidence into the industry. Many original equipment manufacturers have registered improved sales vis-à-vis the past few months, and this brings back a sentiment of resolve to the sector,” said Rajesh Menon, Director General, SIAM.