Vehicle sales in India dropped by 4.31% in July compared to the same month last year, according to data from the VAHAN portal compiled by the Federation of Automobile Dealers’ Associations (FADA). In total, 1.96 million vehicles were sold across all categories, showing weaker consumer demand.
Passenger Vehicles & Two-Wheelers Decline
- Two-wheelers: Sales fell 6.5% to 1.36 million units, mainly because rural customers were busy with crop sowing and heavy rains kept people away from showrooms.
- Passenger vehicles (cars, SUVs, etc.): Sales slipped 1% to 3,28,613 units. Rural markets performed better than urban areas. Maruti Suzuki stayed at the top, while Hyundai overtook Mahindra & Mahindra for second place, selling 43,009 units compared to M&M’s 42,207 units.
- Commercial vehicles: Sales were almost unchanged at 76,439 units, supported by new product launches, marketing, and institutional orders. However, rural transport demand was low due to heavy rain, weak demand for goods like cement and coal, and slower loan approvals.
Tractors Buck the Trend
Tractor sales jumped 11% to 88,722 units. This was driven by good monsoon rains, strong crop sowing, timely government subsidies, and overall positive farming conditions.
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Why Sales Dropped
FADA president C S Vigneshwar explained that last year’s July sales were unusually high due to a rebound after extreme weather, creating a “high base” for comparison. This year’s decline is partly because buyers delayed purchases until after the monsoon, especially with the festive season starting in August.
Looking Ahead
Dealers expect sales to improve in the coming months as weather conditions stabilise and festivals encourage more buying.
