PV sales rise 10 per cent in July on new launches, enhanced discounts: FADA

The segment experienced notable growth due to a thriving rural economy, positive monsoon effects, and the government’s support programs enhancing rural incomes, Vigneshwar oted.

“The introduction of new products and better stock availability also contributed significantly, despite market slowdowns in certain regions, excessive rains, and increased competition,” he added.

Commercial vehicle retail sales grew 7 per cent year-on-year to 80,057 units last month.

“Positive factors included growth in the construction and mining sectors, while challenges such as continuous rainfall, negative rural market sentiment, poor finance availability, and high vehicle prices were also noted,” Vigneshwar said.

Tractor sales declined 12 per cent year-on-year to 79,970 units in July.

FADA, which collated vehicle registration data from 1,568 out of 1,645 RTOs across the country, noted that the near-term outlook across the auto retail segments shows a blend of optimism and caution.

Two-wheeler sales are expected to be buoyed by factors such as a growing rural economy, positive monsoon impacts and the introduction of new products.

The festive season beginning after the Aadi festival and favourable agricultural conditions are also likely to contribute to increased sales.

However, heavy rainfall, ongoing agricultural activities and inconsistent monsoon patterns may dampen demand in certain areas.

FADA noted that the PV segment could see mixed results in the near-term.

While the festive season, attractive schemes and good monsoon are expected to boost sales, concerns over low consumer sentiment, heavy rainfall and a lack of new product launches persist, it said.

High inventory levels pose a significant risk and it is crucial for PV OEMs to avoid further increases in stock to prevent financial strain on dealers, FADA said.

The CV segment faces a modest outlook, with positive factors including improved market reach and the festive season, tempered by challenges such as bad freight rates and ongoing rainfall, it added.