Retail sales of passenger vehicles declined by 5 percent, business decreased in the month of August

New Delhi : Passenger vehicle sales have fallen sharply in the month of August. It is being said that sales have fallen by 5 percent on an annual basis due to delays in customer purchases, poor consumer sentiment and continuous heavy rains. Industry association FADA presented these figures on Thursday. Based on these figures, it has been found that about 3,09,053 passenger vehicles have been registered in the month of August, whereas this number was 3,23,720 in the same month last year.
“Despite the festive season, the market remains under pressure…vehicles are now lying in warehouses for 70-75 days…and the total inventory is 7.8 lakh vehicles worth Rs 77,800 crore,” Federation of Automobile Dealers Association (FADA) president Manish Raj Singhania said in a statement.
Immediate action should be taken to stop it
He said that instead of reacting to the situation, PV original equipment manufacturers (OEMs) are increasing the number of items being dispatched to dealers on a monthly basis, which is making the problem even worse. “FADA urges all banks and NBFCs to immediately intervene and control the financing given to dealers holding excessive stock,” Singhania said. He said that these dealers should also take immediate action to stop holding excess stock to protect their financial position.
Vehicle sales continue to boost
Wholesale sales of passenger vehicles (PVs) stood at 3,50,355 units in July 2023. According to data released by the Society of Indian Automobile Manufacturers (SIAM), utility vehicles continued to drive passenger vehicle sales, growing 4.1 per cent to 1,88,217 units last month as against 1,80,831 units in July 2023. However, passenger car sales declined 12 per cent to 96,652 units as against 1,09,859 units in the same month last year. According to SIAM data, wholesale sales of two-wheelers grew 12.5 per cent to 14,41,694 units last month as against 12,82,054 units in July 2023.
(With agency input)