July PV Dispatches Flat Amid Inventory Woes

OEMs banking on festivals, monsoon to revive demand

- ANJALI SINGH

Dispatches of passenger vehicles (PVs) in the country saw a flat growth of 1 percent year-on-year (Y-o-Y) in July to 348,000 units, hobbled by high inventories with dealers and subdued consumer demand.

Original equipment manufacturers are prioritizing retail sales and aligning dispatches with market demand.

Retail sales have remained muted with around 328,000 units sold in July.

Vahan registrations showed Maruti Suzuki leading with 128,423 units, capturing a 40 percent market share.

Hyundai Motor India reclaimed second spot with 42,661 units and a 13 percent share after slipping to third in June, followed by Mahindra & Mahindra (M&M) at 41,476 units (13 percent) and Tata Motors at 39,795 (12 percent).

Industry experts say domestic sales will stay muted in the short term.

"Inventories remain elevated, prompting manufacturers to moderate dispatches. According to dealer feedback, customer enquiries have declined and buyers are taking longer to finalize purchases," said Anurag Singh, advisor, Primus Partners.

Maruti Suzuki, India's largest PV maker, saw a flat growth rate of 0.2 percent Y-o-Y, dispatching 137,776 units in the month as against 137,463 units in the same month last year.