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Total domestic passenger vehicles (PV) wholesales (dispatches to dealers) in July grew 2.57 per cent year on year to 3,50,149 units compared with 3,41,370 units in the corresponding month last year.
However, total domestic two-wheeler wholesales declined 7.18 per cent year on year to 12,82,054 units (13,81,303 units) during the month.
According to the monthly data shared by Society of Indian Automobile Manufacturers (SIAM) on Thursday, the wholesales of both motorcycles and scooters fell during the month.
Sales of motorcycles declined 6 per cent year on year to 8,17,206 units (8,70,028 units) in July. Similarly, scooter sales declined 10.54 per cent year on year to 4,28,640 units (4,79,159 units) in July.
Three-wheeler sales, meanwhile, grew 79 per cent year on year to 56,034 units (31,324 units) during the month.
2W degrowth
“Though the PV and three-wheeler segments are performing well, there has been a degrowth of two-wheelers in July 2023, compared with July 2022. Overall, we expect that the positive economic environment, good monsoons, and the upcoming festive season will support continued growth in the auto industry,” Vinod Aggarwal, President, SIAM, said.
Due to the decline in two-wheeler sales, vehicle sales across categories declined around 4 per cent year on year to16,88,237 units (17,53,997 units) last month. However, in the April-July period, PV sales grew 7.81 per cent year on year to 12,98,495 units (12,04,360 units).
Two-wheeler wholesales also grew 6.21 per cent year on year to 54,23,018 units (51,05,836 units) during the April-July quarter, the SIAM data showed.
Entry-level demand sluggish
According to analysts, the entry-level segment volumes in two-wheelers continue to remain sluggish.
“Even as the overall monsoon precipitation has remained adequate till date, the temporal and spatial distribution of precipitation has been uneven. Amid concerns of impact of uneven precipitation on farm cash flows and consequently rural demand, there continue to be concerns regarding a sustained demand recovery for the industry on account of the material rise in the cost of ownership over the past few years,” Rohan Kanwar Gupta, Vice-President and Sector Head - Corporate Ratings, ICRA, said.
In the three-wheeler segment, wholesales grew 86.31 per cent year on year to 2,00,509 units (1,07,617 units) during the four-month period.
Overall, sales across categories grew 7.85 per cent year on year to 69,22,283 units (64,17,967 units) during the April-July period.
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