Leading Car Makers Report Dip in Wholesales in July Amid Moderation in Demand

On Thursday, major car manufacturers Maruti Suzuki and Hyundai reported a decline in wholesales for July as companies adjusted vehicle dispatches to dealers in response to a moderation in demand.

Maruti Suzuki India announced that its total domestic passenger vehicle sales reached 1,37,463 units in July, a decrease of 9.64 percent from the 1,52,126 units sold in the same month last year. Interestingly, sales of mini-segment cars, including the Alto and S-Presso, saw an increase to 9,960 units from 9,590 units in the previous year.

However, the company faced challenges in the compact car segment, which includes popular models like the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR. Sales in this segment dropped to 58,682 units compared to 67,102 units in July 2023. Additionally, sales of utility vehicles such as the Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, and XL6 also declined to 56,302 units from 62,049 units in the same period last year.

Hyundai Motor India experienced a 3 percent decrease in domestic dispatches, with 49,013 units sent to dealers last month compared to 50,701 units in July of the previous year. Similarly, Tata Motors reported an 11 percent decline in total domestic sales, recording 70,161 units in July versus 78,844 units a year ago.

Conversely, Mahindra & Mahindra showed a positive trend, reporting a 15 percent increase in domestic passenger vehicle sales, reaching 41,623 units last month compared to 36,205 units in the previous year. Kia India also saw a 2.5 percent year-on-year growth in domestic sales, with 20,507 units sold in July compared to 20,002 units in July 2023.

In the two-wheeler sector, Bajaj Auto reported a significant 18 percent rise in total domestic sales (including commercial vehicles), reaching 2,10,997 units last month, up from 1,79,263 units in the same month last year. TVS Motor Company saw an 8 percent growth in domestic two-wheeler sales, with 2,54,250 units sold in July compared to 2,35,230 units in the previous year. Honda Motorcycle & Scooter India (HMSI) registered a remarkable 41 percent year-on-year growth in domestic sales for last month, with 4,39,118 units sold.