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<keyword id="20163833" type="General" weightage="20" keywordseo="passenger-vehicle" source="keywords">Passenger vehicle</keyword> <keyword id="19957111" type="General" weightage="20" keywordseo="retail-sales" source="keywords">retail sales</keyword> in India witnessed a 7 per cent on-year decline in June as severe <keyword id="19933152" type="General" weightage="20" keywordseo="heatwave" source="keywords">heatwave</keyword> conditions resulted in 15 per cent less showroom walk-ins, industry body <keyword id="20108734" type="General" weightage="20" keywordseo="FADA" source="keywords">FADA</keyword> said on Friday. Overall passenger vehicle registrations stood at 2,81,566 units last month, as compared to 3,02,000 units in June 2023. "Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to extreme heat resulting in 15 per cent less walk-ins and delayed monsoons," the Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement. Dealer feedback highlights challenges such as low customer inquiries and postponed purchase decisions, he added. Singhania also highlighted that inventory levels of passenger vehicles have reached an all-time high, ranging from 62 to 67 days. With the festive season still some time away, it is crucial for passenger vehicle Original Equipment Manufacturers (OEMs) to exercise caution, he stated. Effective inventory management strategies are essential to mitigate financial strain from high interest costs, Singhania stated. "FADA strongly urges passenger vehicle OEMs to implement prudent inventory control and engage proactively with the market," he added. Two-wheeler registrations rose 5 per cent year-on-year to 13,75,889 units in June. Factors such as extreme heat resulted in 13 per cent less walk-ins by probable customers in showrooms, Singhania said. Stalled monsoon and election-related market slowdowns particularly affected rural sales, which fell from 59.8 per cent in May to 58.6 per cent in June, he added. Commercial vehicle sales dropped 5 per cent to 72,747 units last month, from 76,364 units in June 2023. "The industry continues to face de-growth, impacted by high temperatures affecting the agricultural sector and infrastructural project slowdowns," Singhania stated. Tractor sales last month declined 28 per cent year-on-year to 71,029 units in June. While three-wheeler registrations rose 5 per cent to 94,321 units in June, as compared to 89,743 units in the year-ago month. Overall retail sales rose marginally year-on-year to 18,95,552 units in June. On the business outlook, FADA stated that for two-wheelers, the arrival of the monsoon is expected to provide a boost, although challenges such as agricultural cash flow constraints and regional market variations remain. In the passenger vehicle segment, high inventory levels and ongoing low market sentiment necessitate cautious management, the industry body said. Meanwhile, the commercial vehicle sector looks forward to potential growth driven by renewed infrastructure projects and seasonal demands, despite current slowdowns, it said. "Based on current market conditions, the overall rating for July auto retail performance is cautiously optimistic with a moderate outlook," FADA, which represents over 30,000 dealership outlets, stated. It stated that vehicle registration data for the month was collated from 1,567 out of 1,700 RTOs across the country. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-july-2024/slidelist/111304902.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-july-2024/slidelist/111304902.cms" target="_blank">Upcoming smartphones launching in India in July 2024</a><a href="https://www.businessinsider.in/tech/news/hp-envy-x360-14-review/articleshow/111407165.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/hp-envy-x360-14-review/articleshow/111407165.cms" target="_blank">HP Envy x360 14 review – feature-packed laptop with a sleek design</a><a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-razr-50-ultra-flip-phone-launched-in-india-for-99999/slidelist/111504950.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-razr-50-ultra-flip-phone-launched-in-india-for-99999/slidelist/111504950.cms" target="_blank">Motorola Razr 50 Ultra flip phone launched in India for ₹99,999</a>

Passenger vehicle retail sales dip 7% in June as heatwave curtails showroom visits

Domestic <keyword id="21999883" type="General" weightage="20" keywordseo="passenger-vehicle-retail-sales" source="keywords">passenger vehicle retail sales</keyword> declined 1 per cent year-on-year in May, as blistering <keyword id="21177616" type="General" weightage="20" keywordseo="summer-heat" source="keywords">summer heat</keyword> and elections impacted demand, <keyword id="21580028" type="General" weightage="20" keywordseo="automobile-dealers" source="keywords">automobile dealers</keyword>' body <keyword id="20108734" type="General" weightage="20" keywordseo="FADA" source="keywords">FADA</keyword> said on Monday. Passenger vehicle registrations dipped to 3,03,358 units last month, as compared with 3,35,123 units in May 2023. "Dealers cited the impact of elections, extreme heat and market liquidity issues as major factors for the dip in sales last month," the Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said. Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also affected sales, he added. Additionally, the month saw increased customer postponements and low enquiries, Singhania stated. Due to the extreme heat, the number of walk-ins to showrooms dropped by around 18 per cent, he said. Two-wheeler sales rose 2 per cent to 15,34,856 units in May, as against 14,97,778 units in the same month last year. Singhania said positive rural demand on account of good rains in some regions and improved finance availability kept the counters ticking. Three-wheeler retails rose 20 per cent year-on-year to 98,265 units last month. While commercial vehicle sales witnessed an increase of 4 per cent at 83,059 units last month, as compared to 79,807 units in May 2023. "Despite growth due to a low base from last year and increased bus orders, the industry faced challenges due to wholesale pressures, government policy effects, and negative market sentiment," Singhania said. He noted that the near-term outlook for automobile retail is 'cautiously optimistic', influenced by a mix of positive and challenging factors across various segments. Government formation is expected to bring stability and improve market sentiment, Singhania said. Dealers are hopeful about better supplies and positive movement in key sectors like cement, coal and iron ore, he said. Above normal rains during monsoon, is expected to enhance rural demand and support economic activities, he added. "However, extreme weather, such as heatwaves and heavy rains, along with the reopening of schools in July, might delay purchase decisions," Singhania said. Challenges persist, including intense competition, lack of new model launches and poor marketing efforts by OEMs, he said. FADA, which represents over 15,000 automobile dealerships having over 30,000 dealership outlets, collated sales data from 1,360 out of 1,503 RTOs across the country. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/news/tata-altroz-racer-hatchback-launched-in-india-starting-at-9-49-lakh/articleshow/110798203.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/tata-altroz-racer-hatchback-launched-in-india-starting-at-9-49-lakh/articleshow/110798203.cms" target="_blank">Tata Altroz Racer hatchback launched in India starting at ₹9.49 lakh</a><a href="https://www.businessinsider.in/business/webstories/nvidia-beats-apple-becomes-second-most-valuable-company-top-10-companies-by-market-cap/slidelist/110793951.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/webstories/nvidia-beats-apple-becomes-second-most-valuable-company-top-10-companies-by-market-cap/slidelist/110793951.cms" target="_blank">Nvidia beats Apple, becomes second most valuable company: Top 10 companies by market cap</a><a href="https://www.businessinsider.in/tech/news/indian-smartwatch-shipments-remain-flat-in-q1-2024-the-year-expected-to-end-in-a-decline/articleshow/110789121.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/indian-smartwatch-shipments-remain-flat-in-q1-2024-the-year-expected-to-end-in-a-decline/articleshow/110789121.cms" target="_blank">Indian smartwatch shipments remain flat in Q1 2024, annual shipments expected to end in a decline</a>

Passenger vehicle retail sales dip 1% in May as excessive heat, elections impact demand: FADA

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Passenger vehicle retail sales dip 7% in June as heatwave curtails showroom visits

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Passenger vehicle retail sales dip 1% in May as excessive heat, elections impact demand: FADA

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