Car Sales Slow Down For Third Consecutive Month in June 2024

Passenger vehicle sales in India remain low for the third consecutive month in June. High base and reduced post-pandemic pent-up demand attributed to low sales volume. Sales rose 3.7% from the previous year but slightly declined from May, with 3,40,784 units sold compared to 3,28,710 last year. SUVs constitute 53% of sales.

Carmakers attributed the modest sales growth to the tapering of pent-up demand which started post-pandemic. Despite better availability of vehicles and easing of semiconductor shortage issues, automobile companies have not got the desired sales number. Industry stakeholders state that as the demand environment is positive, passenger vehicle sales this fiscal will likely grow in modest single-digits by 4-6% on a high base.

In June, market leader Maruti Suzuki posted a 3.1% increase to 1,37,160 vehicles. Partho Banerjee, senior executive officer (marketing and sales) at the company quotes the Economic Times, “There was a lull in sales due to extreme heatwave and on account of the general elections. But now with the onset of the monsoons and record kharif output, we expect the momentum to pick up.”