Automobile retail sales in India witnessed a growth of 4.84 per cent year-on-year across all segments in June, according to data shared by the Federation of Automobile Dealers Associations (FADA). Total retail sales in the domestic market crossed 20.03 lakh units, with FADA attributing the rise in sales to festival and wedding-season demand.
“Segment-wise, every category closed in the green with two-wheelers at 4.73 per cent, three-wheelers at 6.68 per cent, passenger vehicles at 2.45 per cent, commercial vehicles at 6.6 per cent, tractors at 8.68 per cent and construction equipment at 54.95 per cent,” said FADA president C.S. Vigneshwar.
“While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns,” he said.
Retail sales of passenger vehicles declined by 1.49 per cent month-on-month, while increasing by 2.45 per cent year-on-year.
“Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support. Some dealers indicated that certain PV manufacturers have introduced compulsory billing procedures — such as automatic wholesale debits — to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues,” said Vigneshwar.
CV retail declined 2.97 per cent month-on-month, while achieving a robust growth of 6.6 per cent year-on-year. Deliveries in the beginning of the month boosted volumes before the monsoon-induced slowdown and limited liquidity dampened enquiries and conversions, Vigneshwar said.
“Members pointed to the impact of new CV taxation and mandatory air-conditioned cabins, which have elevated ownership costs, alongside muted infrastructure demand. Overall, June reflected a resilient CV segment adeptly navigating cost pressures and a softening economy,” he explained.
FADA said that the outlook in July is expected to be mixed due to favourable conditions in the agriculture sector and re-opening of schools, however, conditions will remain slightly soft due to seasonal headwinds, higher price points and liquidity constraints.
Dealer sentiment appears tilted towards slowdown-flat and de-growth expectations (42.8 per cent and 26.1 per cent) exceed growth forecasts (31.1 per cent).
In the 2W segment, ahead of schedule monsoon rains and renewed activity in rural areas have driven interest, yet heavy rainfall, variety shortages and price hikes effective from July are slowing conversion, it added.
PV faces high-base effects, limited new-model launches and tight financing, offset in part by festival planning and fresh incentive schemes. CV continues to grapple with muted infrastructure demand, higher ownership costs from new taxation and mandatory AC-cabin norms, even as extended order pipelines provide some relief.
PV is facing a high-base effect, limited new model launches and tight financing, partly offset by the festival scheme and new incentive schemes. The commercial vehicle industry is grappling with subdued infrastructure demand, new taxation and increased ownership costs owing to mandatory AC cabin norms, although expanded order pipelines are providing some relief.
For its outlook ahead, FADA has adopted “a stance of cautious optimism-leveraging rural demand drivers and government capex while remaining agile to navigate monsoon-related disruptions, supply constraints and liquidity pressures.”
With the inputs of IANS
