By-Sagar Shetty, Research Analyst
In August 2024, auto wholesale figures exhibited mixed trends across various segments. Passenger Vehicles (PVs) continued to face challenges due to high inventory levels and stagnant retail demand. Conversely, the Two-Wheeler (2W) segment led growth, driven by a sustained recovery among first-time buyers and favorable conditions in the rural economy. Inventory buildup in this segment is expected with the onset of Onam and Ganesh Chaturthi. The domestic Commercial Vehicle (CV) segment experienced a decline, attributed to seasonal monsoon effects and persistent weakness post-general elections. Tractor OEMs also reported diminishing growth, as the full impact of the monsoon is yet to be realized. Looking ahead, Onam is anticipated to play a crucial role in boosting demand next month. However, growth in northern regions may remain subdued due to the Pitrupaksha and Shradh periods, limiting purchases of any big-ticket item. A more significant uptick in growth is expected with the onset of Durga Puja in October.