New Delhi. Retail sales of passenger vehicles, including cars and SUVs, in India grew 10 per cent to 3,20,129 vehicles in July this year as against 2,90,564 in the same month last year. According to the Federation of Automobile Dealers Associations (FADA), this has been possible due to new model launches and high discounts.
“Dealers have reported this profit due to good product availability, attractive schemes and wide range of products,” CS Vigneshwar, vicepresident, Federation of Automobile Dealers Associations (FADA), said in a statement.
He said despite the challenges of heavy rains, low consumer demand and intense competition, dealers managed to maintain sales through better promotions and increased discounts.
However, Vigneshwar also pointed out that this increase has coincided with high inventory levels, which have reached a historical high of 6772 days, equivalent to Rs 73,000 crore worth of stock.
He said, “This poses a major risk to the sustainability of dealers, which requires utmost caution. FADA urges PV original equipment manufacturers (OEMs) to be cautious of the disruption these high inventory levels may cause to dealers.”
Twowheeler retail sales stood at 14,43,463 units in July, up 17 per cent from 12,31,930 units in July 2023.
Vigneshwar said the segment witnessed strong growth due to prosperity in the rural economy, positive impact of better monsoon and government programmes to boost rural incomes.
“This growth has been witnessed due to the launch of new products and better stock availability in spite of the slowdown in the market in some regions, excessive rainfall and increased competition,” he said.
Commercial vehicle (CV) retail sales grew 7 per cent yearonyear to 80,057 units last month.
“Positive factors include growth in the construction and mining sectors, while challenges include persistent rains, negative rural market sentiments, poor finance availability and high vehicle prices,” Vigneshwar said.
Tractor sales in July declined 12 per cent yearonyear to 79,970 units.
FADA, which collected vehicle registration data from 1,568 out of 1,645 RTOs across the country, observed that the nearterm outlook in the auto retail segment is offering a mix of optimism and caution.
Factors such as a growing rural economy, positive monsoon effect and the launch of new products are expected to boost twowheeler sales. Apart from this, sales are also expected to increase due to the festive season and favorable agricultural conditions.
On the other hand, heavy rainfall and inconsistent monsoon patterns could dampen demand in some regions. FADA said the PV segment may see mixed results in the near term.
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– / Written By Top News Bulletin
Image Credit: KhasKhabar.