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Passenger Vehicles sales may decline in August 2024, two-wheeler sales expected to increase
Wholesale sales are expected to be higher than retail sales due to inventory build-up by dealers ahead of the upcoming festive period. Passenger vehicle segment sales in the domestic market are expected to decline marginally by about 3%. Overall, the report suggests that the automobile industry will see a mix in sales in the month of August of FY 2024-25.
The growth in the two-wheeler industry is pegged at 8% this August. According to a report by the wealth and investment firm Nuvama, two-wheeler sales are on an uptick in August due mainly to strong rural demand and selling in the cities. Favorable monsoons have improved rural sentiments, boosting sales ditto.
As against this, wholesale sales are expected to be higher than retail sales due to inventory build-up by dealers in anticipation of the upcoming festive period. At Rs. Sales in the domestic market are thus expected to decline marginally by about three% in the passenger vehicle segment.
Such sluggish performance in the passenger vehicle segment is due to a high base effect created by the onset of the festive season last year. The commercial vehicle industry may see a marginal decline in annual growth by about 4% in the home market, the report said.
