Priyanka Tiwari
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Suspense crime, Digital Desk : India's automotive industry witnessed contrasting trends in May 2024, with a noticeable slowdown in domestic passenger vehicle (PV) sales while export numbers accelerated, painting a mixed picture for the sector.
According to industry reports, domestic wholesales of passenger vehicles experienced a dip compared to the same period last year. Several factors are believed to have contributed to this cooling demand, including the impact of the ongoing general elections, which often leads to deferred purchase decisions by consumers. Additionally, a high base effect from strong sales in May of the previous year, coupled with intense heatwaves across many parts of the country potentially reducing showroom footfall, also played a role.
However, the export front offered a brighter outlook. Indian automakers significantly ramped up their overseas shipments, indicating robust demand for Indian-manufactured vehicles in international markets. This surge in exports helped to offset some of the sluggishness seen in the domestic arena and highlights the growing competitiveness of Indian auto manufacturing on the global stage.
While overall domestic numbers were subdued, the preference for Sports Utility Vehicles (SUVs) continued to be a dominant trend, with this segment still commanding a significant share of the market. Automakers are keenly observing these evolving consumer preferences, including a gradual shift towards electric vehicles (EVs) and other green mobility solutions.
The industry performance in May underscores a period of recalibration, with manufacturers likely adjusting production strategies in response to these fluctuating domestic and international demand patterns. The sector will be looking towards a potential revival in domestic sales post-elections and with the onset of the festive season later in the year.
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