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Regular-article-logo Friday, 26 April 2024

Automobile retail sales falter

Total sales across categories declined 7.17% to 17,50,116 units last month compared with 18,85,253 units in the year-ago month

TT Bureau New Delhi Published 20.02.20, 07:27 PM
Two-wheeler sales declined 8.82 per cent to 12,67,366 units last month compared with 13,89,951 units in January 2019. Commercial vehicle sales declined 6.89 per cent to 82,187 units from 88,271 units in January 2019.

Two-wheeler sales declined 8.82 per cent to 12,67,366 units last month compared with 13,89,951 units in January 2019. Commercial vehicle sales declined 6.89 per cent to 82,187 units from 88,271 units in January 2019. Shutterstock

Automobile dealers’ body Fada on Thursday said retail sales of passenger vehicle (PV) in January declined 4.61 per cent to 2,90,879 units over the year-ago period, hit by a response by end customers.

According to the Federation of Automobile Dealers Associations (Fada), which collected vehicle registration data from 1,223 of the 1,432 regional transport offices in the country, PV sales stood at 3,04,929 units in January 2019.

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Two-wheeler sales declined 8.82 per cent to 12,67,366 units last month compared with 13,89,951 units in January 2019.

Commercial vehicle sales declined 6.89 per cent to 82,187 units from 88,271 units in January 2019.

Three-wheeler sales, however, rose 9.17 per cent to 63,514 units last month against 58,178 units in January 2019.

Total sales across categories declined 7.17 per cent to 17,50,116 units last month compared with 18,85,253 units in the year-ago month.

“Auto sales continue to be in the negative territory in the month of January, except for three-wheelers, with many consumers still not concluding on their decisions. Ongoing transition of BS-IV to BS-VI is also a factor in delayed purchase decisions,” Fada president Ashish Harsharaj Kale said in a statement.

The overall weak economic sentiment continues. The budget also did not have any direct measures for the industry, he said. There were growth drivers for the entire economy for the medium term and long term, which would benefit the industry, Kale added.

On sales outlook, the FADA chairman said the situation was constantly changing because of weak consumer sentiment and slowdown as well as the upcoming transition to the BS-VI regime.

“We appeal to the government to continue announcing positive measures, specifically for the auto industry, as well as for the overall economy which will help us to return to a growth trajectory at the earliest,” he added.

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