Mixed Signals: Automotive Sales Show Steady Trends as Challenges Persist

Domestic passenger vehicle sales in India observed a slight decline of 0.8 percent in May, standing at 344,656 units compared to 347,492 units the same month last year, according to the Society of Indian Automobile Manufacturers (SIAM).

Two-wheeler dispatches, however, saw an uptick of 2.2 percent, reaching 1,655,927 units, while total vehicle wholesales across different categories registered a 1.8 percent increase, totaling 2,012,969 units.

SIAM Director General Rajesh Menon expressed optimism about future growth, citing the Reserve Bank of India's series of repo rate cuts and predictions of a favorable monsoon season as key factors likely to enhance affordability and boost consumer confidence in the auto sector.

(With inputs from agencies.)