The boom in the Indian vehicle market continues, with July seeing rise across all categories

The Federation of Automobile Dealers Association released data indicating positive growth across all vehicle segments in July. The automobile sector experienced a 10 percent growth in sales on a yearly basis, following the positive trends of recent months.

Falling behind China and the United States Indian automotive industry has secured the position of third largest across the globe. Although surpassing these two giants is not easy to accomplish, the Indian automotive market is making impressive progress.

The automotive market of India is experiencing significant growth, particularly in the passenger vehicle category, by introducing numerous new and updated models across various body types and price ranges. While the two-wheeler segment has been a matter of concern, there was still positive growth in this category during the month of July.

According to FADA, the major factor that benefited the industry and market was a decrease in delivery timelines, while the demand has remained strong recently. This positive trend is experienced across all categories. Despite the severe monsoon and flooding in several parts of northern India affecting demand, passenger vehicle sales have increased. Furthermore, the SUV body type is observed to be the primary driver for the rising demand.

The sales of two-wheelers have seen a significant boost lately. Although electric two-wheelers are gaining popularity, the market for petrol-powered is also showing growth, according to FADA. However, the commercial vehicles segment is experiencing both challenges and opportunities.

The high vehicle cost and severe monsoon had a negative impact on the demand, while the availability of stocks and support for infrastructure projects supported the market during July. Three-wheelers are doing better than other types of vehicles, with record sales in July.

As per the prediction of FADA, the Indian automotive sector is expected to have a successful August due to the upcoming festive period in the third week of the month. The supply and demand balance is expected to be beneficial for the two-wheeler segment while introducing new models will boost the passenger vehicle category. The demand for three-wheelers could also increase, and the restrained market in the commercial vehicle category will contribute to the sector's growth.

According to Procurement Resource, the Indian Automobile Industry is experiencing significant growth and secured the position of third largest in the world. The passenger vehicle and three-wheeler market are the major contributors to this growth by securing maximum sales.