Domestic Passenger Vehicle Sales Dip Marginally In May Amidst Elections, Heat Wave

ENA Sectors 2024-06-11 14:30:40 New Delhi, Jun 11 (KNN) In a statement released on Monday, the Federation of Automobile Dealers Associations (FADA) reported a marginal 1 per cent year-on-year decline in domestic passenger vehicle retail sales for the month of May. FADA President Manish Raj Singhania attributed this dip to the impact of elections, soaring temperatures, and market liquidity issues. According to FADA data, passenger vehicle registrations stood at 3,03,358 units last month, compared to 3,35,123 units in May 2023. Despite better supply, pending bookings, and discount schemes, the lack of new model launches, intense competition, and inadequate marketing efforts by automakers also contributed to the sales decline. Singhania noted that the extreme heat conditions led to an 18 percent drop in walk-in customers at showrooms. Additionally, increased customer postponements and low enquiries further impacted sales during the month. In contrast, the two-wheeler segment witnessed a 2 per cent increase in sales, with 15,34,856 units sold in May, compared to 14,97,778 units in the same month last year. Positive rural demand due to good rainfall in some regions and improved finance availability supported this growth. The three-wheeler and commercial vehicle segments also experienced growth, with sales increasing by 20 per cent and 4 per cent year-on-year, respectively. While acknowledging the near-term outlook for automobile retail as cautiously optimistic, Singhania cited factors such as the formation of a new government, better supplies, positive movement in key sectors, and above-normal monsoon rains as potential drivers for enhanced rural demand and economic activities. However, challenges persist, including extreme weather conditions, intense competition, a lack of new model introductions, and inadequate marketing efforts by automakers. FADA, which represents over 15,000 automobile dealerships with over 30,000 outlets, collated sales data from 1,360 out of 1,503 Regional Transport Offices (RTOs) across the country. (KNN Bureau) 38153 https://knnindia.co.in/news/newsdetails/sectors/domestic-passenger-vehicle-sales-dip-marginally-in-may-amidst-elections-heat-wave 2024-06-11 14:30:40 knnindia.co.in Domestic Passenger Vehicle Sales Dip Marginally In May Amidst Elections, Heat Wave