Mumbai: India’s passenger vehicle and two-wheeler sales fell in the June quarter, breaking a four-year growth streak, underscoring tepid demand in the rural markets and lower offtake of entry-level cars, as well as scooters and motorcycles.
Sales of cars, utility vehicles, and vans fell 1.4% year-on-year to around 1 million units last quarter, showed data from the Society of Indian Automobile Manufacturers (SIAM). Two-wheelers contracted 6.2% to 4.6 million units. SIAM counts automobile sales as factory dispatches and not retail sales.
PV exports however bucked the trend, growing 13% to 204,330 units, a record for a quarter.
Meanwhile, passenger vehicle sales slipped to an 18-month low in June, declining 7.4% year-on-year to 312,000 units, the lowest sales tally since last December. PV exports in June grew by 0.6% to 76,719 units.
It marks a reversal from the strong sales performance since August 2024, driven initially by new model launches and improved supply chains.
Domestic two-wheeler sales fell 3.4% to 1.5 million units, but three-wheelers recorded a 3.8% rise to 61,828 units.
“There is clear stress in the entry-level segment, particularly for cars under ₹10 lakh,” Shailesh Chandra, president of SIAM said at a media briefing on Tuesday. “On the other hand, premium SUVs and higher-end vehicles continue to perform well, highlighting a tale of two markets.”
Chandra attributed the demand slowdown to affordability challenges in rural areas, changing consumer preferences, and ongoing inventory correction. He also flagged a growing supply-side concern—continued delays in Chinese approvals for rare earth magnet exports, essential for electric vehicle (EV) production.
On the exports front, in addition to PVs, other segments also posted strong performance. Two-wheeler shipments jumped 34%, followed by commercial vehicles (23%), and two-wheelers (23%), and passenger vehicles (13%), reflecting robust demand from international markets including Latin America, the Middle East, Japan, and Australia.
On the shortage of rare earth magnets and its impact on the sector, Chandra said he expects the issue to be resolved soon. “There are around 30 applications still awaiting approval in China. This poses a significant supply risk for the EV sector,” he noted. “The industry is working to identify alternative sources and move toward long-term self-reliance with government support.”
In the two-wheeler category, monthly scooter sales declined 1.7%, motorcycles 3.7%, and mopeds plunged 17.4%, all pointing to sustained pressure on lower-income buyers. However, Chandra noted a 5% rise in Q1 vehicle registrations, driven by marriage-season demand and increased purchases by female consumers.
Electric three-wheelers remained under stress, with e-rickshaw and e-cart sales declining nearly 14% and 25% respectively in June. But overall segment growth was supported by a 5.3% increase in passenger carrier sales, aided by improved access to financing.
Looking ahead, SIAM expects demand to recover at a modest pace in the coming quarters, supported by the central bank’s recent repo rate cut, infrastructure spending, and festive season tailwinds.
Sales of cars, utility vehicles, and vans fell 1.4% year-on-year to around 1 million units last quarter, showed data from the Society of Indian Automobile Manufacturers (SIAM). Two-wheelers contracted 6.2% to 4.6 million units. SIAM counts automobile sales as factory dispatches and not retail sales.
PV exports however bucked the trend, growing 13% to 204,330 units, a record for a quarter.
Meanwhile, passenger vehicle sales slipped to an 18-month low in June, declining 7.4% year-on-year to 312,000 units, the lowest sales tally since last December. PV exports in June grew by 0.6% to 76,719 units.
It marks a reversal from the strong sales performance since August 2024, driven initially by new model launches and improved supply chains.
Domestic two-wheeler sales fell 3.4% to 1.5 million units, but three-wheelers recorded a 3.8% rise to 61,828 units.
“There is clear stress in the entry-level segment, particularly for cars under ₹10 lakh,” Shailesh Chandra, president of SIAM said at a media briefing on Tuesday. “On the other hand, premium SUVs and higher-end vehicles continue to perform well, highlighting a tale of two markets.”
Chandra attributed the demand slowdown to affordability challenges in rural areas, changing consumer preferences, and ongoing inventory correction. He also flagged a growing supply-side concern—continued delays in Chinese approvals for rare earth magnet exports, essential for electric vehicle (EV) production.
On the exports front, in addition to PVs, other segments also posted strong performance. Two-wheeler shipments jumped 34%, followed by commercial vehicles (23%), and two-wheelers (23%), and passenger vehicles (13%), reflecting robust demand from international markets including Latin America, the Middle East, Japan, and Australia.
On the shortage of rare earth magnets and its impact on the sector, Chandra said he expects the issue to be resolved soon. “There are around 30 applications still awaiting approval in China. This poses a significant supply risk for the EV sector,” he noted. “The industry is working to identify alternative sources and move toward long-term self-reliance with government support.”
In the two-wheeler category, monthly scooter sales declined 1.7%, motorcycles 3.7%, and mopeds plunged 17.4%, all pointing to sustained pressure on lower-income buyers. However, Chandra noted a 5% rise in Q1 vehicle registrations, driven by marriage-season demand and increased purchases by female consumers.
Electric three-wheelers remained under stress, with e-rickshaw and e-cart sales declining nearly 14% and 25% respectively in June. But overall segment growth was supported by a 5.3% increase in passenger carrier sales, aided by improved access to financing.
Looking ahead, SIAM expects demand to recover at a modest pace in the coming quarters, supported by the central bank’s recent repo rate cut, infrastructure spending, and festive season tailwinds.
You may also like
John Torode 'found out about MasterChef axe on BBC News' as star claims he wasn't told
Samay Raina submits written apology to NCW chief
Time for a law to compensate persons acquitted after long incarceration: Supreme Court
Caitlyn Jenner's gesture to Sophia Hutchins family after heartbreaking death
'Whatever she thinks is credible': Trump reacts again on Epstein files; says Pam Bondi has 'handled it very well'
