Automobile retail sales in India dropped 8% in July because of this reason: Report
Automobile retail sales in the country dropped 8% in July this year on lower registrations of passenger vehicles, two-wheelers and tractors.
According to data released by the Federation of Automobile Dealers Associations (FADA) on August 4, overall automobile sales in July stood at 14,36,927 units compared to 15,59,106 units in July 2021, news agency PTI reported.
FADA, which represents over 15,000 automobile dealers, said it had collected data for July from 1,334 out of 1,409 RTOs across India.
Last month, passenger vehicle retail sales witnessed a drop of 5% at 2,50,972 units compared to 2,63,238 units in the year-ago period.
Two-wheeler retail sales in July this year stood at 10,09,574 units, down 11% from 11,33,344 units in the same month last year, the FADA data showed.
Tractor sales also dropped in July to 59,573 units, down 28% from 82,419 units in the year-ago period.
However, three-wheeler and commercial vehicles saw an increase in their retail sales in July.
Three-wheeler sales last month increased by 80% to 50,349 units, as compared to 27,908 units in July 2021. On the other hand, commercial vehicle sales were at 66,459 units in July, compared to 52,197 units in the same month last year.
Speaking to PTI, FADA President Vinkesh Gulati pointed out on August 4 that when it comes to passenger vehicle retail sales, even though there was a blip in July numbers, the segment continued to see the introduction of new models, especially compact Sport Utility Vehicles (SUVs), aiding growth.
On the decline in retail sales of two-wheelers, Gulati said, “The two-wheeler retail run witnessed poor demand as rural India continues to underperform. This coupled with high inflation, erratic monsoon and high cost of ownership continue to keep bottom of the pyramid customers at bay.”
"Commercial vehicle retail figures continue to witness good demand as the Government's infrastructure push is helping customers in concluding their purchases. Apart from this, the bus segment also witnessed the beginning of demand recovery as educational institutions and offices are once again back to normal mode," Gulati further told the news agency.
(With PTI inputs)