Retail sales of both passenger vehicles and two-wheelers fell during the month while commercial vehicle sales remained flat. The only exception was a double-digit increase in tractor sales, thanks to plentiful rains and robust crop sowing.
Retail sales are counted as vehicle registrations. Data collated by dealers lobby group Federation of Automobile Dealers’ Associations (FADA) from the VAHAN portal of the Ministry of Road, Transport and Highways (MoRTH) showed about 2 million vehicles across categories were registered in July 2024.
While two-wheeler sales fell 6.5% on-year to 1.36 million units in July this year, passenger vehicle sales declined by about 1% to 328,613 units. Commercial vehicle sales were largely flat at 76,439 units last month, while three-wheelers grew 0.8% to 111,426 units.
Tractors beat the subdued industry trend, posting a 11% sales increase to 88,722 units.
“After three consecutive months of growth, India’s auto retail sector applied the brakes in July, with overall retails declining by 4.31% YoY,” said C S Vigneshwar, president, FADA. “This pullback largely stems from a high-base effect in July 2024, when an extreme heat wave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month.”In the two-wheeler segment, crop-sowing activity and prolonged heavy rains dampened rural footfalls more sharply than urban. Dealers are nevertheless confident of a post-monsoon uptick, with several purchase decisions deferred to August ahead of the festive season, said Vigneshwar.In the passenger vehicle segment, rural markets outperformed urban. Dealer inventory is currently at around 55 days.
While Maruti Suzuki kept its leadership of the domestic car market, Hyundai Motor India beat Mahindra & Mahindra to reclaim the second slot. Hyundai’s retail sales stood at 43,009 units last month, ahead of M&M’s 42,207 units.
CV sales inched up by 0.2% in July led by some momentum in urban markets. Dealers said new-model launches, aggressive marketing support, bulk institutional orders, and timely stock availability helped drive sales. “Rural haulage demand, however, remained fragmented amid heavy rainfall, seasonal softness in cement, coal and construction logistics, and slower financier disbursements, prompting many buyers to defer purchases to the post-monsoon period,” said Vigneshwar.
Tractor sales grew by a robust 11%, helped by timely release of enhanced farm subsidies and favourable monsoon rains.
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