Auto sales in July saw a steady increase of 10 per cent on-year but recorded a month-on-month decline of 5 per cent, stated the e Federation of Automobile Dealers Associations (FADA) in a release on Monday.
All vehicle categories recorded an increase with passenger vehicles sales at 4 per cent, commercial vehicles at 2 per cent, two-wheelers at 8 per cent, three-wheelers at 74 per cent and tractors at 21 per cent. Despite the consisted on-year growth, there was a 5 per cent decline in month-on-month sales, with an exception of the three-wheeler segment with grew 9 per cent compared to the previous month. Two-wheelers, passenger vehicles, tractors registered reductions of 6 per cent, 4 per cent and 8 per cent respectively, while CVs closed flat.
FADA President, Manish Raj Singhania said, “Auto retail grew 10% YoY in July, mirroring last month's trend. However, the MoM decline continued highlighting short-term slowdowns. Compared to pre-COVID figures, auto retail decreased by -13%, with significant drops in 2W and CV at -23% and -4%. 3W hit record sales in July'23 at 94,148 units, a 74% YoY and 9% MoM increase, surpassing previous high of March’23’s 86,857 units.”
Maruti Suzuki sold the highest number of passenger vehicles at 1,17,571, while Hyundai Motor sold 40,945 units in July. Tata Motors came in third with sales of 39,033 units. Hero Motocorp was the highest selling two-wheeler company followed by Honda Motorcycle and Scooter with sales of 3,61,219 and 2,99,090 respectively.
When it comes to commercial vehicles, Tata Motors took the lead at 26,635 units sold, followed by Mahindra and Mahindra at 17,582 units.
Bajaj Auto sold the highest number of three-wheeler units at 31,453, while Mahindra and Mahindra, and Mahindra and Mahindra Swaraj sold the highest numbers of tractors at 20,920 and 16,379.
“Despite challenges like heavy monsoons and a tilt towards EVs due to high fuel prices, 2W showed resilience in July '23, with increased demand and trust in reputable brands. The 3W segment's record numbers indicate industry potential and a growing EV interest. Yet, addressing issues like OEM support and dealer engagement remains crucial,” said Singhania.
July saw a surge when it comes to orders of passenger vehicles but severe monsoons and flood-like situations impacted sales. “The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school buses, challenges from erratic weather and high vehicle costs affected demand. However, infrastructure project boosts remain a silver lining,” he added.
FADA believes that the auto industry is poised for an intriguing August with a mix of opportunities and challenges. Two-wheeler and passenger vehicle segments are expected to see an uptick due to the upcoming festival season, while the three-wheeler category is witnessing an interest towards electric variants.
However, the IMD projection of below-average rainfall in August could lead to lower crop yields, reducing purchasing power, especially in the rural regions.
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