SIAM Reports Mixed Performance for the Indian Auto Industry in July 2024

Key Highlights:

• In July 2024, the Indian automobile industry produced 24,37,138 units across various vehicle types.
• Passenger vehicle sales dropped by 2.5% to 3,41,510 units.
• Three-wheeler sales increased by 5.1%, mainly due to a rise in passenger carriers.
• Exports grew by 6.8% to 4,14,631 units.
• From April to July 2024, production went up by 16.8%, domestic sales by 9.5%, and exports by 13.2%.

In July 2024, the Indian automobile industry saw varied performance across different segments. The total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 24,37,138 units, indicating robust manufacturing activity. However, domestic sales showed a mixed picture.

Production and Domestic Sales

In July 2024, the overall output of passenger vehicles, three-wheelers, two-wheelers, and quadricycles totaled 24,37,138 units, indicating a solid manufacturing rate across the board. However, domestic sales statistics provided a more varied picture, with certain segments outperforming others.

Passenger vehicle sales fell 2.5% in July 2024, to 3,41,510 units from 3,50,355 in July 2023. This drop is due to a 12% decrease in passenger vehicle sales and a small decrease in van sales. Utility vehicles, on the other hand, reversed the trend, increasing sales by 4.1%, demonstrating that consumer demand in this category remains strong.

Domestic sales of three-wheelers increased by 5.1%, from 56,204 in July 2023 to 59,073 in July 2024. This rise was mostly driven by the passenger carrier segment, which expanded by 8.7%. However, the goods carrier and e-rickshaw segments experienced drops, indicating a mixed future for the three-wheeler market.

Exports Performance

Exports sales grew 6.8% in July 2024, reaching 4,14,631 units compared to 3,88,134 units the previous year. This growth was supported by a strong performance in utility vehicles and two-wheelers, with export increases of 38.9% and 7.8%, respectively.

Year-to-Date Performance (April–July 2024)

The cumulative data from April to July 2024 shows that the industry's overall production increased by 16.8%, from 83,37,506 units last year to 97,35,722. Domestic sales increased by 9.5%, while exports increased by 13.2%.

During the first four months of the fiscal year, passenger vehicle production increased by a moderate 4.6%, while domestic sales increased by 1.8%. In contrast, the three-wheeler and two-wheeler segments expanded more significantly, with gains of 8.5% and 20%, respectively.

The forthcoming holiday season and favorable economic policies are projected to support the industry in the short term, however ongoing obstacles such as weather and supply chain issues may continue to impact overall performance. The industry remains optimistic that these elements will help to drive growth and stabilize the market in the coming months.

Also Read: Electric Three-wheeler Sales Report July 2024: YC Electric Emerges as Top Choice

CMV360 Says

The mixed performance of the Indian auto industry in July 2024 reflects a complex market situation. While some segments, like two-wheelers and utility vehicles, are performing well, others, such as passenger cars and certain three-wheelers, are struggling. 

This variety in performance highlights how different factors—like changing consumer preferences and economic conditions—can impact various parts of the industry.