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Passenger vehicle sales fall 7% in June as heatwave curtails showroom visits: FADA
Passenger vehicle sales dropped 7% in June, with only two and three-wheeler sales showing slight signs of growth.
Indian passenger vehicle sales saw a 7% drop in June 2024 compared to June 2023 due to heatwaves resulting in 15% less showroom walk-ins, PTI wrote, citing data from the Federation of Automobile Dealers Associations (FADA).
How many vehicles were sold in June 2024 compared to June 2023?
Registrations of new passenger vehicles also saw a decline. It stood at 2,81,566 in June 2024, compared to 3,02,000 in June 2023.
Inventory levels of passenger vehicles also reached an all-time high, ranging from 62-67 days.
Also Read: Mahindra & Mahindra sales rise 11% to 69,397 units in June
Commercial vehicle sales slumped 5% to 72,747 units in June 2024, compared to 76,364 units in June 2023.
Tractor sales declined 28% to 71,029 units in June 2024, compared to June 2023
Why did sales of passenger and commercial vehicles decline?
High temperatures which affected the agricultural and infrastructural sectors led to this slowdown, PTI wrote, quoting Manish Raj Singhania, the President of FADA, who added that stalled monsoon and election-related market slowdowns particularly affected rural sales.
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Rural sales as compared to total sales of vehicles fell from 59.8% in May to 58.6% in June. Overall retail sales was 18,95,552 units in June, which amounts to a marginally year-on-year increase in sales.
How were the sales of two and three-wheelers?
Things were different for two and three-wheelers.
Two-wheeler registrations increased by 5% to 13,75,889 units in June 2024, compared to June 2023, while three-wheeler registrations also rose by 5% to 94,321 units in June 2024, compared to 89,743 units in June 2023.
Also Read: Maruti Suzuki sales rise 12% to 1,79,228 units in June
FADA stated that the monsoons will provide a boost to two-wheeler sales, although this is potentially hindered by agricultural cash flow constraints and regional market conditions.
"Based on current market conditions, the overall rating for July auto retail performance is cautiously optimistic with a moderate outlook," FADA, which represents over 30,000 dealership outlets, stated.
