Auto retails in India see almost 26 pc growth at over 25.91 lakh units in best-ever July

New Delhi, Aug 6 (IANS) The Indian auto retail industry saw every single vehicle category posted its best-ever July performance for the first time — selling a total of 25,91,138 units which was up 25.89 per cent (year-on-year), the Federation of Automobile Dealers Associations (FADA) data showed on Thursday.

This is the strongest July growth in the series outside Covid-distorted base years — while holding almost flat (-0.16 per cent) over a strong June, said FADA Vice President Sai Giridhar.

Two-wheeler (2W) retails stood at 18,18,289 units, up 28.25 per cent on-year. For the first time, the 2W category crossed the 18-lakh mark in a July.

On the annual basis, rural 2W sales (+28.59 per cent) edged past urban (+27.86 per cent), but the sequential picture diverged sharply. Urban 2W rose 5.04 per cent while rural declined 6.16 per cent on-month basis, as erratic rains and flooding across western and central belts and the inauspicious Aadi/Shravan window in southern markets kept rain-fed rural walk-ins subdued.

“That a seasonally soft, erratic monsoon July ranks as the 12th-highest retail month of the 151 months since January 2014 — a list otherwise dominated by festive months — speaks to the structural depth of the India growth story,” said Giridhar.

Passenger vehicle (PV) retails came in at 4,16,555 units, up 19.13 per cent and for the first time, PV sales crossed the 4-lakh mark in a July.

The Bharat-led character deepened, with rural PV growing 24.72 per cent against urban’s 15.76 per cent.

Dealers credited GST 2.0 affordability, new launches and scheme support — 44.05 per cent said OEM schemes supported July bookings — even as consumer hesitation around the E20 transition nudged buyers towards CNG, hybrids and EVs, said FADA.

Commercial vehicle (CV) retails at 99,666 units grew 24.04 per cent — the highest July ever, knocking on the door of the one-lakh mark. Rural again led decisively, growing 29.37 per cent against urban’s 19.36 per cent, confirming that goods-movement demand continues to broaden beyond the metros.

Three-wheelers at 1,33,778 units (16.16 per cent growth) recorded their best July ever with EV penetration at 65.08 per cent. Tractors at 1,17,349 units surged 28.10 per cent, with rural growth of 28.83 per cent, reflecting catch-up Kharif sowing.

For the August-September-October period, dealer confidence is the strongest the survey has recorded in recent history. FADA would, however, counsel reading the coming months’ prints with care.

–IANS

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