As result of the slowdown in the economy because of consumer uncertainty before the 2019 Lok Sabha elections and liquidity crunch in the non-banking financial companies, dispatches of passenger vehicles declined 17% year-on-year in April to 247,541 units, according to data released by the Society of Indian Automobile Manufacturers.
Domestic car sales declined 19.9% to 160,279 units in April, while utility vehicles sales fell 6.6% to 73,854 units during the period, according to the data.
In April, market leader Maruti Suzuki reported a 19% fall in dispatches, while other manufacturers like Hyundai Motor India ltd and Mahindra and Mahindra Ltd also reported double digit fall in volumes.
According to Vishnu Mathur, director general, Society of Indian Automobile Manufacturers, some kind of recovery in sales will come only after the general elections are over as consumers resume thinking on discretionary spends.
“Demand in the rural economy is not looking great and it has reflected in the sales of motorcycles which were down by 11.8%. We cannot expect a sudden recovery in sales any time soon," added Mathur.
In the commercial vehicle segment, dispatches of heavy and medium duty vehicles declined 13.5% to 24,725 units in April, while light commercial vehicle sales declined a meager 1.1%.
In an indication of subdued demand in rural and urban markets, sales of scooters fell a sharp 25.8% to 489,852 units, while motorcycles sales declined by 11.81% to 1,084,811 units.
Overall, wholesales of vehicles across segments in April declined by 15.9% to 2,001,096 units.