New Delhi, Automobile dealers' body FADA on Monday said domestic passenger vehicle retail sales declined by 1 per cent year-on-year in May as demand was hit due to extreme heat and elections.
Passenger vehicle registrations declined to 3,03,358 units last month, compared to 3,35,123 units in May 2023.
“Dealers cited election impact, extreme heat and market liquidity issues as major factors for the decline in sales last month,” said Manish Raj Singhania, president of the Federation of Automobile Dealers Associations (FADA).
Despite better supplies, some pending bookings and discount schemes, lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also impacted sales, he said.
Additionally, the month saw an increase in customer deferrals and fewer enquiries, Singhania said.Due to extreme heat, the number of showroom visitors has declined by about 18 percent, he said.
Two-wheeler sales increased by 2 percent to 15,34,856 units in May, compared to 14,97,778 units in the same month last year.
Singhania said positive rural demand led by good rains in some areas and better availability of finance kept stocks up.
Retail sales of three-wheelers grew 20 percent year-on-year to 98,265 units last month. While commercial vehicle sales grew by 4 percent last month at 83,059 units, compared to 79,807 units in May 2023.“Despite growth due to low base and increased bus orders over the last year, the industry faced challenges due to wholesale pressure, government policy impacts and negative market sentiment,” Singhania said.
He said the near-term outlook for automobile retail is 'cautiously optimistic', influenced by a mix of positive and challenging factors across sectors.
Singhania said, the formation of the government is expected to bring stability and improve market sentiment.
He said dealers are optimistic about better supplies and positive changes in key sectors like cement, coal and iron ore.
He said that above normal rainfall during monsoon is expected to increase rural demand and support economic activities.“However, extreme weather, such as heat waves and heavy rains as well as the reopening of schools in July may delay the purchase decision,” Singhania said.
Challenges persist, he said, including intense competition, lack of new model launches and poor marketing efforts by OEMs.
FADA, which represents over 15,000 automobile dealerships with over 30,000 dealership outlets, collected sales data from 1,360 out of 1,503 RTOs across the country.
Passenger vehicle registrations declined to 3,03,358 units last month, compared to 3,35,123 units in May 2023.
“Dealers cited election impact, extreme heat and market liquidity issues as major factors for the decline in sales last month,” said Manish Raj Singhania, president of the Federation of Automobile Dealers Associations (FADA).
Despite better supplies, some pending bookings and discount schemes, lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also impacted sales, he said.
Additionally, the month saw an increase in customer deferrals and fewer enquiries, Singhania said.Due to extreme heat, the number of showroom visitors has declined by about 18 percent, he said.
Two-wheeler sales increased by 2 percent to 15,34,856 units in May, compared to 14,97,778 units in the same month last year.
Singhania said positive rural demand led by good rains in some areas and better availability of finance kept stocks up.
Retail sales of three-wheelers grew 20 percent year-on-year to 98,265 units last month. While commercial vehicle sales grew by 4 percent last month at 83,059 units, compared to 79,807 units in May 2023.“Despite growth due to low base and increased bus orders over the last year, the industry faced challenges due to wholesale pressure, government policy impacts and negative market sentiment,” Singhania said.
He said the near-term outlook for automobile retail is 'cautiously optimistic', influenced by a mix of positive and challenging factors across sectors.
Singhania said, the formation of the government is expected to bring stability and improve market sentiment.
He said dealers are optimistic about better supplies and positive changes in key sectors like cement, coal and iron ore.
He said that above normal rainfall during monsoon is expected to increase rural demand and support economic activities.“However, extreme weather, such as heat waves and heavy rains as well as the reopening of schools in July may delay the purchase decision,” Singhania said.
Challenges persist, he said, including intense competition, lack of new model launches and poor marketing efforts by OEMs.
FADA, which represents over 15,000 automobile dealerships with over 30,000 dealership outlets, collected sales data from 1,360 out of 1,503 RTOs across the country.
