Sales volume of automobile companies for August are expected to pick up due to a ramp-up in production levels, says Emkay Global Financial Services Ltd. in a report.

Emkay Global pointed out that July automobile wholesales improved on a sequential basis, supported by a pent-up demand, better rural sentiment and improved dispatches following higher plant utilisation levels. However, volumes were lower than last year's levels across segments, except for tractors.

Domestic tractor volumes grew in double digits in July, owing to positive customer sentiment. Retail sales were higher than wholesales following lower production levels resulting from supply chain constraints for fuel injection components.

It said strong growth was witnessed in tractor sales in Uttar Pradesh, Madhya Pradesh, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Rajasthan and Punjab, while States with muted performance were West Bengal and Chhattisgarh.

Domestic two-wheeler wholesales were better month-on-month (MoM) due to higher production levels. However, volumes were lower year-on-year. Retail sales were lower MoM as June volumes were supported by the marriage season.

Domestic passenger vehicle industry volumes improved MoM mainly due to higher production levels while commercial vehicle industry volumes remained in the slow lane due to surplus capacity available with fleet operators. The drop was higher in medium and heavy commercial vehicles than in light commercial vehicles.