- Domestic car sales in India grew by three percent in June, compared to June of 2023.
A flurry of offers and discounts in the month of July has made passenger vehicles (PVs) more affordable across price brackets and body types. And behind these initiatives is a fear that growth in sales of cars in what is the world’s largest vehicle market (in terms of sales) is now slowing down. As per June sales data from Society of Indian Automobile Manufacturers (SIAM), the domestic market in the country saw 3.37 lakh units in the PV segment (wholesales) as against 3.27 lakh units in the same month of 2023. While still in the positive by three per cent, the days of meteoric year-on-year rise may be behind.
SIAM data shows that in the month of June, there were 3,37,757 dispatches from carmakers to dealers, as against 3,27,788 units in June of 2023. And while the two-wheeler and three-wheeler markets have grown stronger, there is a degree of concern among carmakers.
Also Read : How June heatwave burnt a hole in car sales in India
Almost every major carmaker posted record sales in months and quarters gone by. The past year of 2023 saw car sales in India jump to record highs but it was largely agreed that this high mark would be difficult to either replicate or surpass in 2024.
Also Read : Check out upcoming cars in India
Interestingly though, some of the sales momentum was carried forward to Q1 of 2024 with robust performance in car sales. But the performance in Q2 2024 has been far more muted, possibly the reason for the slew of discounts and other customer-centric initiatives.
What does the future hold for the Indian car market?
Vinod Aggarwal, SIAM President, noted that the automobile market as a whole is likely to fare well owing to factors such as positive outlook on monsoon and the upcoming festive period. But will festive celebrations bring wide smiles to carmakers?
The year 2024 has seen comparitively fewer new or updated car models being launched so far, when compared to 2023. There is a general perception that the market at present isn’t as buzzing as it was last year. It is a perception that was previously pointed to by Federation of Automobile Dealers Association of FADA when it urged carmakers to make note of low customer enquiries at the dealership level.
First Published Date: 12 Jul 2024, 13:01 PM IST