FADA: Passenger vehicle sales decreased, 303358 vehicles sold in May, sales of vehicles in this segment increased

Passenger vehicle retail sales dip 1 per cent in May as excessive heat elections impact demand: Passenger vehicle sales in the country declined by 1% year-on-year during May due to the severe heat and election-induced demand. On the other hand, sales of commercial vehicles including two-wheelers and three-wheelers saw a jump of 2% to 20%. Industry body Federation of Automobile Dealers Association (FADA) gave this information on Monday.

Sales of two-wheelers and three-wheelers increased

Registration of passenger vehicles declined to 3,03,358 units in May this year, while in the same period last year this figure was at 3,35,123 units. During this period Two-wheeler sales grew by two per cent to 15,34,856 units as against 14,97,778 units in the same month last year. Retail sales of three-wheelers grew 20 per cent year-on-year to 98,265 units last month. Commercial vehicle sales grew 4 per cent to 83,059 units last month as against 79,807 units in May 2023.

Also read: Narendra Modi took oath as PM for the third consecutive time, these leaders got place in the cabinet

What is the reason for the decline in sales of passenger vehicles

FADA President Manish Raj Singhania said that dealers have cited elections, extreme heat and cash crunch in the market as the main reasons for the decline in sales last month. He said that despite better supply, some pending bookings and discount schemes, lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also affected sales. Manish Raj Singhania said that due to extreme heat, the number of customers visiting the showroom has declined by about 18 percent. Let us tell you that FADA represents more than 15,000 motor vehicle dealerships. It has collected vehicle retail data from 1,360 out of 1,503 RTOs across the country.