While passenger vehicle Sales fell 4.5% to 309,053 units, while commercial vehicle sales declined 6.05% to 73,253 units amid weather-related disruptions and weak industrial demand, data from the Federation of Automobile Dealers Associations (FADA) showed. Total retail sales as determined through vehicle registrations across all categories rose around 3% to 1,891,499 units in August.
This was largely due to rising sales of two-wheelers and three-wheelers, which grew by 6.3% and 1.6% to 1,338,237 units and 105,478 units respectively last month.
“This monsoon season brought with it unpredictable weather, which began with extreme heatwaves that delayed the monsoon and gave way to heavy rainfall, leading to flood-like conditions in several areas. These weather anomalies have had a direct impact on the Indian automobile retail market, which registered a modest year-on-year growth of just 2.88 per cent in August,” FADA President Manish Raj Singhania said.
In the two-wheeler segment, while retail sales grew year-over-year, they fell 7.29% sequentially, largely due to heavy rains and floods, which impacted demand in several markets.
Singhania said many customers postponed their purchases, anticipating the launch of new products ahead of the festive season, while others postponed it due to market saturation and changing preferences. “Limited marketing efforts by OEMs (original equipment manufacturers) and subdued market sentiment further impacted sales,” he said. In the passenger vehicle segment, consumer sentiment remained weak. “Even with the arrival of the festive season, the market remains under significant pressure due to delayed customer purchases, poor consumer sentiment and persistent heavy rains“Singhania said.
Slow sales have left dealers with high inventory levels, currently stretching to 70-75 days, totalling 780,000 vehicles worth Rs 77.8 billion.
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