Passenger vehicle retail sales in India jumped 10% year-on-year in July, reaching 3,20,129 units, up from 2,90,564 units last year. This increase is attributed to new model launches and enhanced discounts. However, high inventory levels, now at a historic 67-72 days worth ₹73,000 crores, pose a risk to dealer sustainability. Two-wheeler sales rose 17% to 14,43,463 units, driven by a strong rural economy and government support. Commercial vehicle sales grew 7% to 80,057 units, while tractor sales fell 12% to 79,970 units. Investors should be cautious of inventory risks and market challenges.
