New Delhi, Apr 13 (KNN) Domestic sales of entry-level cars and motorcycles are struggling to recover to pre-pandemic levels, according to new data from the Society of Indian Automobile Manufacturers (SIAM).

The mini passenger car segment saw sales plummet around 40% year-over-year in 2023-24 to just 152,000 units. This is significantly below the 471,000 mini cars sold in India during 2018-19 before Covid-19 disrupted the industry.

The commuter motorcycle segment (75-110cc engines) fared better with 5.651 million units sold, up 8 per cent year-over-year. However, this popular entry-level bike category remains well below its 2018-19 peak of 8.422 million units.

SIAM President Vinod Aggarwal attributed the sluggish entry-level sales to a slow rural recovery and customers opting for pricier vehicle models.

"The rural economy, with the current monsoon outlook, will only become better. Therefore, I think entry-level sales will also improve," he said.

Aggarwal added that the migration of buyers to higher segments could also be contributing to softness at the lower end of the market.

The new sales figures highlight challenges facing budget-conscious consumers and automakers seeking to reignite demand in India's high-volume, entry-level vehicle segments.

(KNN Bureau)