New Delhi: Retail sales of passenger vehicles in India saw a 7 per cent year-on-year decline in June as severe heatwaves resulted in 15 per cent fewer walk-ins to showrooms, it said on Friday industry body FADA.
Total passenger vehicle registrations stood at 2,81,566 units last month, up from 3,02,000 units in June 2023.
"Despite improved product availability and significant discounts aimed at stimulating demand, market confidence remains weak due to extreme heat, which has led to 15 percent fewer walk-ins and delays in monsoons," Federation of Automobile Dealers Association (FADA) president Manish Raj Singhania said in a statement.
Feedback from dealers highlights challenges such as low numbers of customer inquiries and postponed purchasing decisions, he added.
Singhania also highlighted that passenger vehicle inventory levels have reached an all-time high, ranging between 62 and 67 days.
With the festive season still some time away, it is critical for passenger vehicle OEMs to exercise caution, he said.
Effective inventory management strategies are essential to mitigate financial stress caused by high interest costs, Singhania said.
"FADA strongly urges passenger vehicle manufacturers to implement prudent inventory control and proactively engage with the market," he added.
Two-wheeler registrations increased 5 per cent year-on-year to 13,75,889 units in June.
Factors such as extreme heat resulted in 13 percent fewer walk-ins by prospective customers to showrooms, Singhania said.
The stagnant monsoon and election-related market slowdown particularly hit rural sales, which fell from 59.8 percent in May to 58.6 percent in June, he added.
Sales of commercial vehicles fell 5 percent to 72,747 units last month, from 76,364 units in June 2023.
"The industry continues to face a slowdown, impacted by high temperatures affecting the agricultural sector and the slowdown in infrastructure projects," said Singhania.
Tractor sales last month declined 28 percent year-on-year to 71,029 units in June.
While registrations of three-wheelers increased by 5 per cent to 94,321 units in June, compared to 89,743 units in the same month last year.
Overall retail sales increased marginally year-on-year to 18,95,552 units in June.
On business prospects, FADA said the arrival of monsoon is expected to provide a boost to two-wheelers, although challenges such as agricultural cash flow constraints and regional market variations remain.
In the passenger vehicle segment, high inventory levels and current low market sentiment require cautious management, the industry body said.
Meanwhile, the commercial vehicle sector expects potential growth driven by renewed infrastructure projects and seasonal demands, despite the current slowdown, he said.
"Based on current market conditions, the overall rating of auto retail performance in July is cautiously optimistic with a moderate outlook," said FADA, which represents more than 30,000 dealers.
It stated that vehicle registration data for the month was collected from 1,567 out of 1,700 RTOs across the country.
Total passenger vehicle registrations stood at 2,81,566 units last month, up from 3,02,000 units in June 2023.
"Despite improved product availability and significant discounts aimed at stimulating demand, market confidence remains weak due to extreme heat, which has led to 15 percent fewer walk-ins and delays in monsoons," Federation of Automobile Dealers Association (FADA) president Manish Raj Singhania said in a statement.
Feedback from dealers highlights challenges such as low numbers of customer inquiries and postponed purchasing decisions, he added.
Singhania also highlighted that passenger vehicle inventory levels have reached an all-time high, ranging between 62 and 67 days.
With the festive season still some time away, it is critical for passenger vehicle OEMs to exercise caution, he said.
Effective inventory management strategies are essential to mitigate financial stress caused by high interest costs, Singhania said.
"FADA strongly urges passenger vehicle manufacturers to implement prudent inventory control and proactively engage with the market," he added.
Two-wheeler registrations increased 5 per cent year-on-year to 13,75,889 units in June.
Factors such as extreme heat resulted in 13 percent fewer walk-ins by prospective customers to showrooms, Singhania said.
The stagnant monsoon and election-related market slowdown particularly hit rural sales, which fell from 59.8 percent in May to 58.6 percent in June, he added.
Sales of commercial vehicles fell 5 percent to 72,747 units last month, from 76,364 units in June 2023.
"The industry continues to face a slowdown, impacted by high temperatures affecting the agricultural sector and the slowdown in infrastructure projects," said Singhania.
Tractor sales last month declined 28 percent year-on-year to 71,029 units in June.
While registrations of three-wheelers increased by 5 per cent to 94,321 units in June, compared to 89,743 units in the same month last year.
Overall retail sales increased marginally year-on-year to 18,95,552 units in June.
On business prospects, FADA said the arrival of monsoon is expected to provide a boost to two-wheelers, although challenges such as agricultural cash flow constraints and regional market variations remain.
In the passenger vehicle segment, high inventory levels and current low market sentiment require cautious management, the industry body said.
Meanwhile, the commercial vehicle sector expects potential growth driven by renewed infrastructure projects and seasonal demands, despite the current slowdown, he said.
"Based on current market conditions, the overall rating of auto retail performance in July is cautiously optimistic with a moderate outlook," said FADA, which represents more than 30,000 dealers.
It stated that vehicle registration data for the month was collected from 1,567 out of 1,700 RTOs across the country.
