Domestic PV wholesales up 3% at 3.4 lakh units in June: SIAM

Passenger vehicle sales in the local market rose in modest single-digit in June mainly due to a high base and easing of post-pandemic pent-up demand.

As per data available with industry body Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales increased by 3% to 337,757 units last month, compared to 327,788 units sold in the same period a year earlier. Sales were driven largely by utility vehicles which now account for 63% of all vehicles sold in the country, SIAM said, indicating continued shift in consumer preference away from hatchbacks and sedans.

Sales of scooters, motorcycles and mopeds in the period under consideration went up by 21.3% to 1,614,154 units. Demand for three-wheelers too grew by 12.3% to 59,544 units in June.

Last quarter, sales of passenger vehicles crossed the 1 million mark for the first time in Q1 of any fiscal year. Passenger vehicle sales went up by 3% to 1,026,006 units between April and June FY25. Sales of commercial vehicles grew by 3.5% to 224,209 units and those of two-wheelers by 20.4% to 4,985,631 units in the same period. Three-wheelers sales rose by 14.2% to 165,081 units in Q1FY25.

CATEGORY	JUNE 2023	JUNE 2024	% CHANGE
Passenger vehicles	327,788	337,757	3
Three-wheelers	53,025	59,544	12.3
Two-wheelers	1,330,826	1,614,154	21.3

Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in Q1 of 2024 has been the highest ever of Q1 and also crossed 1 million units in Q1 for the first time, with a growth of 3%, compared to the previous year. Sales of Three-Wheelers in Q1 of 2024-25 grew by 14.2% compared to last year, with 1.65 Lakh units, which is again the highest ever in Q1.”

Industry stakeholders said the demand environment is positive thanks to forecasts of a normal monsoon and record kharif output, and demand momentum should pick up in the ongoing quarter with the start of the festive season towards the end of August.

Vinod Aggarwal, President, SIAM said, all segments viz., passenger vehicle, commercial vehicle, three-wheeler and two-wheelers posted growth in Q1 of 2024-25 over the Q1 of last year. “While passenger vehicles and commercial vehicles have witnessed moderate growth, the two wheelers and three wheelers have posted very handsome growth in double digits. Within two-wheelers, scooters have posted even higher growth based on some green shoots of recovery in entry level two-wheelers. With positive outlook on monsoon and coming festive season, the automotive Sector is poised to perform better in the balance part of the year”, he informed.

Passenger vehicle sales growth rate for the entire fiscal year is expected to be in single-digits due to the high base, carmakers said it is in line with expectations. Automakers clocked bumper sales for two straight years lifted by pent-up demand, growing 8.4% to its highest-ever mark at 4.22 million units in FY24 and by 27% to 3.89 million units in FY23.

Separately, Aggarwal said while sales of electric vehicles have been lower than expectations, one would have to look at ground realities to understand the dynamics in the segment. “EMPS (Electric Mobility Promotion Scheme) was announced as an interim measure and ends on July 31. The government is expected to announce incentives for EVs under a new scheme in the budget, which will help support demand.” This, along with measures to increase capital expenditure on infrastructure, boost consumption in the rural economy, forecasts of good monsoons, will help propel overall demand in the automobile industry, he said.

Aggarwal, however, declined to comment on recent incentives announced by the state government in Uttar Pradesh on strong hybrid and plug-in hybrid vehicles citing differences between companies part of the auto industry.