FADA: Passenger vehicle sales decreased by 7%, 281566 vehicles sold in June

Passenger vehicle retail sales declined 7 per cent year-on-year in June. The biggest reason for this was a 15 per cent drop in the number of people visiting showrooms due to the scorching heat. Industry bodyFederation of Automobile Dealers Association (FADA) gave this information on Friday. Last month in IndiaTotal passenger vehicle registration stood at 2,81,566 units, while in the same month last year this figure was 3,02,000 units.

There was a boom in demand for two-wheelers and three-wheelers

Two-wheeler registrations rose 5 per cent year-on-year to 13,75,889 units in June. Singhania said the delay in monsoon and election-related market slowdown particularly impacted rural sales, which fell from 59.8 per cent in May to 58.6 per cent in June. Three-wheeler registrations rose 5 per cent to 94,321 units in June as against 89,743 units in the same month a year ago.

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Commercial vehicle sales declined

Commercial vehicle sales declined by 5 per cent to 72,747 units last month from 76,364 units in June 2023. Tractor sales declined 28 per cent year-on-year to 71,029 units in June.Total retail sales in June grew marginally year-on-year to 18,95,552 units.

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FADA President Manish Raj Singhania said that despite better product availability and adequate discounts to stimulate demand, the number of customers declined by 15 per cent due to the scorching heat and the market sentiment remains sluggish due to the delay in monsoon. He said that according to dealers, they faced challenges like less information about the vehicles from the customers and delay in purchase decision. Singhania said that the festive season is still some time away, so it is important for passenger vehicle companies (OEMs) to be cautious.

According to FADA, based on the current market conditions, the overall rating of automotive retail performance for the month of July is cautiously optimistic with a moderate outlook.FADA represents over 30,000 dealership outlets. To prepare the report for the month of June, vehicle registration data was collected from 1,567 out of 1,700 RTOs across the country.