The Indian automotive industry witnessed a mix of challenges and growth in August 2024, as revealed in the latest report from the Society of Indian Automobile Manufacturers (SIAM). While two-wheeler and three-wheeler segments showed strong performance, the passenger vehicle market experienced a slight dip, signalling a shifting dynamic within the industry.
The report highlights that domestic passenger vehicle sales stood at 3,52,921 units, marking a 1.8% decline compared to August 2023. This drop was primarily driven by reduced demand for smaller cars, with key manufacturers such as Maruti Suzuki and Honda witnessing lower sales in the compact and mid-size segments. However, utility vehicles fared better, with sales growing by 11.1%, buoyed by models from manufacturers like Mahindra & Mahindra, Kia, and Hyundai, which continue to lead in the SUV market.
On the other hand, the two-wheeler market showed resilience, with a 9.3% year-on-year growth, selling 17,11,662 units in August 2024. Scooters and motorcycles drove this growth, with scooters seeing a notable 10.4% rise and motorcycles increasing by 8.2%. Brands like Hero MotoCorp, Honda, and TVS Motor contributed significantly to this surge, as they continue to capitalise on the demand for affordable and efficient transport.
The three-wheeler segment also recorded a positive shift, growing by 7.7%. Sales in this category were led by passenger carriers, which saw an 11.8% increase, despite a slight decline in the goods carrier and e-rickshaw subcategories. The growth in three-wheelers is attributed to the rising need for cost-effective last-mile connectivity solutions, especially in urban areas.
Despite the mixed performance, industry experts remain optimistic about the future. Rajesh Menon, Director General of SIAM, expressed confidence that upcoming festive seasons and government schemes, such as the PM E-DRIVE, will boost sales across all vehicle categories.
While the automotive sector is grappling with varying performance across segments, the strong growth in two- and three-wheelers signals a shift towards more affordable and versatile transport solutions. However, challenges remain in the passenger vehicle sector, which will require targeted efforts from manufacturers to regain momentum in the coming months.
