November passenger vehicle sales fall nearly 1% on seasonality, sluggish economy1 min read . Updated: 10 Dec 2019, 01:05 PM IST
- Sales in November were high last year because of Diwali falling during the month
- Wholesales of vehicles across categories in November dropped significantly by 12% year-on-year
New Delhi: In an indication that consumer demand remains under pressure, passenger vehicle sales declined 0.8% year-on-year to 2,63,773 units in November. A 10.8% decline in dispatches of passenger cars to 1,60,306 contributed the most to the overall decline. Sales of utility vehicles though rose almost by a third from a year ago to 92,739 units as new launches and entry of players like MG Motor India and Kia Motors India spurred purchase decisions.
Sales in November were high last year because of Diwali falling during the month. The same influence of a festival was missing this time. Also, lack of recovery in the overall consumption demand in the economy continued to adversely impact vehicle dispatches by automakers.
Wholesales of vehicles across categories in November dropped significantly by 12% year-on-year to 17,92,415 units on the back of slowdown in the economy and lack of credit availability from the financial institutions.
A sharp decline in manufacturing and infrastructure activity, coupled with an increase in freight carrying capacity of trucks, led to a decline in wholesales of medium and heavy commercial vehicles to 17,039 units, this category also seeing a declined of nearly a third from last year. Sales of light commercial vehicles also fell 5.4% to 44,868 units. Consequently, the overall commercial vehicles segment saw volumes drop by 15% to 61,907 units.
Dispatches of two wheelers declined by 14.2% to 14,10,939 units, a result of falling farm incomes and subdued demand in rural and semi urban markets. Motorcycle sales fell 15% to 8,93,538 units and those of scooters were down 12% at 4,59,851 units.