Indian Automobile Industry Notices Mixed Performance as Passenger Vehicle Sales Softens

The Indian car industry had a mixed performance last month, with the demand for passenger vehicles (PV) softening and good growth for tractors and two-wheelers rebounding, According to Emkay Global Financial Services. According to research reviewing sales figures from the previous month, there was some mixed results. The tractor industry surprised positively, Emkay Global reported, with growth of 23–25 percent YoY, while growth in PV wholesale for large players moderated to roughly 11 percent YoY, reflecting slowing retail trends (about 8 percent YoY, according to Vahan).

Within two-wheelers, domestic retailers/wholesales have recovered with about 16 percent/over 20 percent yoy growth, partly supported by the low base. Exports remained affected across two-wheeler players, with a 40-52 percent YoY decline.

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According to the report, the electric two-wheeler industry continued to witness consolidation (penetration levels hovering at 5-5.2 percent; share of major OEMs rising), with TVS Motor Company being an outlier with over 15,000 wholesales.

In the case of medium, heavy commercial vehicles (MHCV), growth remained healthy, supported by pre-buying ahead of BS-VI phase-2 norms (effective April 2023) and associated price hikes.

Growth in buses and three-wheelers rebounded strongly with the reopening of the economy, said Emkay Global. According to Emkay Global, the growth in wholesales for major PV players moderated to about 11 percent, reflecting slowing retails.

While demand for the recent sport utility vehicle (SUV) launches across the industry remained strong with a huge backlog, supply-chain issues and weak demand for the entry-level car segment continue to be a challenge with rising discounts, said Emkay Global

With IANS Inputs