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India’s June Auto Wholesales Slide 7% Even as SUVs, Two-Wheelers and Tractors Gain

Cost pressures from tighter safety norms alongside higher entry-level prices have weakened small-car demand even as monsoon-fueled rural sentiment lifts two-wheelers, tractors.

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Overview

  • Passenger vehicle wholesales dropped 7% year-on-year in June as small-car demand weakened and entry-level prices surged.
  • Maruti Suzuki, Tata Motors and Hyundai Motor India each recorded 12–13% declines in June dispatches, reflecting sustained passenger car headwinds.
  • Mahindra & Mahindra posted a 14% increase in total June sales, powered by an 18% jump in SUV volumes and its strongest quarterly SUV performance.
  • TVS Motor Company’s sales rose 20% to 402,001 units in June while tractor wholesales jumped 10%, buoyed by monsoon-driven rural demand.
  • Nomura estimates that mandatory ABS rollout could trim industry volumes by 2–4% as compliance costs rise.