In a recent report released by the Society of Indian Automobile Manufacturers (SIAM), it has been revealed that passenger vehicle (PV) wholesales in India have faced a decline of 1% year-on-year, totaling 3,56,752 units in September 2023. This drop is noteworthy as it follows a high base effect from the previous year, which significantly influenced the overall auto sales landscape. The total dispatches to dealers from manufacturers amounted to 3,61,717 units in September, indicating a clear contraction in the market during this period.

The decline in passenger vehicle sales is further compounded by a significant drop in the second quarter of FY25. Factors such as the Shraddh period, which traditionally sees decreased consumer activity, along with heavy rainfall and the lingering effects of the high base from last year, have all contributed to this downturn. Shailesh Chandra, the president of SIAM, highlighted these challenges, stating, “High base effect of last year, Shraddh period, heavy rain, etc., resulted in decline in overall auto sales in Q2FY25.”

In stark contrast to the struggles faced by the PV segment, the two-wheeler sales witnessed a robust growth of 16% year-on-year, reaching 20,25,993 units last month, compared to 17,49,794 units in September of the previous year. This rise indicates a shift in consumer preference, with more buyers opting for two-wheelers, perhaps due to their affordability and practicality in urban commuting.

Moreover, the three-wheeler wholesales also showed resilience, reporting a 7% increase year-on-year, climbing to 79,683 units as against 74,671 units in September 2023. These trends suggest that while the passenger vehicle sector struggles, other segments like two-wheelers and three-wheelers are thriving.

Looking forward, the outlook for the passenger vehicle industry remains cautious. Industry experts predict that the PV sector is expected to post growth of “sub 5%” in FY25, suggesting that while there may be some recovery, it will not be substantial. The economic pressures, high base effects, and seasonal variations will likely continue to impact sales in the coming months.

This scenario emphasizes the need for manufacturers to adapt to changing market conditions and consumer preferences. As the auto industry navigates these challenges, it will be crucial for companies to innovate and respond effectively to the shifting demands of the market.

For those interested in exploring the latest in the financial sector, be sure to check out the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today for valuable insights. You can also stay updated with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News to keep yourself informed about the latest trends and developments.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX for seamless trading experiences.