India's Auto Retail Sector Sees Mixed Results in July

Retail sales of vehicles across categories in India declined 4.31 per cent year-on-year to 1.96 million units in July, reflecting weak consumer sentiment on a high base. While tractor sales posted strong double-digit growth, passenger vehicles and two-wheelers saw declines, and commercial vehicle sales remained largely flat.

Segment-Wise Performance Highlights

Two-wheelers registrations fell 6.5 per cent to 1.36 million units, passenger vehicle sales slipped 1 per cent to 328,613 units, and commercial vehicle registrations held steady at 76,439 units. Three-wheeler sales inched up 0.8 per cent to 111,426 units.

Tractor sales rose 11 per cent to 88,722 units, supported by robust rainfall and substantial crop sowing.

Market Insights and Future Outlook

"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. The two-wheeler segment saw reduced rural footfall due to crop-sowing activities and sustained heavy rainfall. Dealers expect sales to pick up post-monsoon.

In the passenger vehicle segment, rural markets outperformed urban ones, with dealer inventory at 55 days. Commercial vehicle sales posted a marginal 0.2 per cent increase, aided by new product launches and marketing campaigns.