PremiumAs per the data from the Federation of Automobile Dealers Associations (FADA) the overall automobile retail sales last month stood at 14,36,927 units, as compared with 15,59,106 units in July 2021.
Listen to this article |
Automobile retail sales decreased by 8% on annual basis in July. As per the data from the Federation of Automobile Dealers Associations (FADA) the overall automobile retail sales last month stood at 14,36,927 units, as compared with 15,59,106 units in July 2021.
The drop was on account of a dip in registrations of passenger vehicles (decline by 5%), two-wheelers (decline by 11%), and tractors (decline by 28%).
The President of FADA Vinkesh Gulati told PTI that though there is a dip in July figures, there is continues growth in the introduction of new models, especially compact SUVs.
"Along with this, a better supply in the coming months will help in bringing down customer anxiety due to the long waiting period," he told news agency PTI.
"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 continues to keep bottom of the pyramid customers at bay," Gulati noted.
Three-wheeler and commercial vehicles were indicated to be on a positive path last month. The segments showed growth in sales as vis-à-vis last year.
The sales figure for three-wheeler increased by 80% to 50,349 units from 27,908 units sold in July last year. For commercial vehicles, the increase is about 27%. In July 2021, 52,197 units of commercial vehicles were sold, while the number increased to 66,459 this year.
"CV 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 noted.
Gulati also commented on the China-Taiwan tensions and warned that it may lead to disruptions in chip supplies.
"India's services sector PMI (purchasing manager's index) fell to a 4-month low in July to 55.5, showing that growth momentum lost steam as a result of weaker sales growth and inflationary pressure in the previous month. Overall, FADA remains cautiously optimistic due to the above factors as it enters the festival season," Gulati said.
With Inputs from PTI
