Passenger Vehicle Sales Slumped by 1.6% in August 2024 Compared to Previous Year The passenger vehicle (PV) market faced a significant downturn over the past year.
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The automotive industry has experienced a dynamic start to the fiscal year 2024, with varying trends across different vehicle categories. As per the latest data from the Society of Indian Automobile Manufacturers (SIAM), the month of August 2024 has shown both growth and challenges in production, domestic sales and exports.
The passenger vehicle (PV) market faced a significant downturn over the past year. Production saw a minimal 0.7 per cent rise to 3,76,726 units in August 2024 from 3,74,018 units in August 2023. This increment was mirrored as exports increased by 3.3 per cent, from 63,883 units to 66,008 units. However, domestic sales experienced a 1.6 per cent decrease, from 3,13,715 units to 3,08,779 units, signaling a sharp decline in consumer demand.
The slump in the PV segment could be attributed to several factors, including heavy monsoon, economic challenges, shifting consumer preferences toward other types of vehicles, or supply chain constraints.
The three wheeler market experienced varying results across its two main subcategories of passenger carriers and goods carriers. Passenger carrier production increased by 8.5 per cent, reaching 89,750 units in August 2024, up from 82,744 units in August 2023. Domestic sales grew by 11.8 per cent, while exports increased by 9.5 per cent in the same period.
On the other hand, goods carrier production surged by 19 per cent, from 8,911 units to 10,603 units, but domestic sales fell by 7.6 per cent, from 9,132 units to 8,434 units. Exports, however, exploded by 280.4 per cent in the same period.
The two wheeler market displayed healthy growth across scooters, motorcycles and mopeds. Two wheelers remain a dominant mode of transportation, especially in emerging markets where affordability and fuel efficiency are key. The total two wheeler production increased from 19,16,789 units in August 2023 to 20,10,556 units in August 2024, an increment of 4.9 per cent. Domestic sales saw a growth of 9.3 per cent, whereas exports jumped by 16.4 per cent in the same period.
All in all, the total overall automotive market saw positive momentum. Overall production increased by 4.4 per cent, rising from 23,86,086 units to 24,91,263 units. Similarly, overall domestic sales rose by 7.5 per cent, from 19,45,363 units to 20,90,409 units. Finally, overall exports increased by 13.9 per cent, from 3,80,876 units to 4,33,771 units.
This reflects an industry that is growing steadily, with exports playing an increasingly important role. The rise in domestic sales and production, while moderate, indicates that the automotive sector is rebounding from any previous slumps, buoyed by strong demand in key segments such as two wheelers and utility vehicles.
Rajesh Menon, director general, SIAM said, "Looking ahead, as the country enters the festive season, demand for Vehicles is expected to grow, which will also be duly augmented by the recent announcements of PM E-DRIVE and PM-eBus Sewa Schemes of Government of India."
