PUNE: Automobile retail sales in India rose 10 per cent year-on-year in July, across all categories such as passenger and commercial vehicles, the barometers of the economy, the Federation of Automobile Dealers Associations or FADA said on Monday.
Total retail sales across segments rose to 17,70,181 units last month, as compared to 16,09,217 units in July 2022.
Passenger vehicle sales increased 4 per cent year-on-year to 284,064 units, two-wheelers by 8 per cent to 12,28,139 units, three wheelers by 74 per cent to 94,148 units, tractors by 21 per cent to 90,765 units and commercial vehicles by 2 per cent to 73,065 units.
“Passenger vehicle sales in July were a mix of challenges and triumphs. The month saw a surge in orders and timely OEM supplies, especially with the introduction of new products. However, severe monsoons and flood-like situations, especially in North India, impacted sales. SUVs continued to remain a popular choice,” said FADA president Manish Raj Singhania.
FADA, which represents over 15,000 automobile dealers, maintained that it remains cautious in terms of business outlook.
“While caution remains the operative word in the short term, FADA is hopeful about retail growth prospects, especially with the festive season on the horizon,” FADA noted in its statement.
“The entry-level category in the two-wheeler segment continues to be a cause for concern. In the commercial vehicle space, there are apprehensions regarding streamlined loan disbursements for buyers,” Singhania said.
The inventory level in passenger vehicles breached the 50-day mark, possibly in anticipation of the upcoming festival season, FADA said.
The slowdown in entry-level car vertical remains, it said.
FADA said the larger concern is the projection of below-average rainfall in August, potentially leading to lower crop yields, which could impact purchasing power, especially in rural regions.
