Indian car market grows, two-wheeler segment struggles in July

In its latest release of sales data for July 2023, the Society of Indian Automobile Manufacturers (SIAM) highlighted a diverse performance across various vehicle segments. The report, which offers insights into the domestic automotive market, revealed both positive and challenging trends.

After maintaining growth in the preceding three months of this fiscal year, the Two-Wheeler segment experienced a setback, declining by -7.2% in July 2023 compared to the previous year.

Passenger Vehicles: A total of 3,50,149 units were sold in July 2023, marking a marginal increase of 2.6% from July 2022's figures of 3,41,370 units.

Three-Wheelers: The segment experienced robust growth, with sales reaching 56,034 units in July 2023, a significant 78.9% increase from the 31,324 units sold in July 2022.

Two-Wheelers: The Two-Wheeler category faced a decline, selling 12,82,054 units in July 2023 compared to the previous year's figure of 13,81,303 units, indicating a decrease of -7.2%.

Quadricycles: The Quadricycle segment contributed modestly with sales of 118 units in July 2023, up from 53 units in the same month last year.

Vinod Aggarwal, President of SIAM, commented on the data, stating, "While the Passenger Vehicle and Three-Wheeler segments are showing positive momentum, there has been a decline in two-wheeler sales in July 2023 compared to the same month in 2022. Despite this, we anticipate that the prevailing positive economic climate, favorable monsoons, and the approaching festive season will continue to drive growth in the Auto Industry."

Breaking down the numbers, Rajesh Menon, Director General of SIAM, reported, "The passenger vehicle segment demonstrated resilience, achieving its highest ever July sales with a slight uptick of 2.6% compared to July 2022. Three Wheelers also performed well, witnessing a substantial growth of 78.9% year-on-year. This growth is particularly noteworthy as it is the second-highest July performance on record, trailing only the peak seen in 2018-19."

While the numbers paint a mixed picture, industry experts remain optimistic about the automotive sector's potential. The anticipated positive impact of favourable economic factors, along with the upcoming festive season, are expected to play crucial roles in shaping the industry's trajectory in the coming months.