Passenger vehicles sales decline by a fourth YoY in July but up sequentially1 min read . Updated: 10 Aug 2020, 03:52 PM IST
- Rising cases of covid-19, regional lockdowns and lack of manpower have hampered efforts to increase production. Intermittent lockdowns in some states have hit sales
NEW DELHI: Retail sales of passenger vehicles in the country declined 25.2% year-on-year to 1,57,373 units in July due to disruptions caused by the covid-19 pandemic and ensuing lockdowns, according to data released by Federation of Automobile Dealers Associations (FADA) on Monday.
Showroom sales though improved sequentially from 1,26,417 units sold in June due to increased demand in rural and semi-urban markets and a shift in customer preference for personal transport to avoid contracting the disease. Two-wheelers and tractor sales showed a similar trend.
With retail sales picking up after the relaxation of lockdown curbs in May, most manufacturers have been trying to ramp up production to meet demand. But rising cases of covid-19, regional lockdowns and lack of manpower have hampered efforts to increase production. Intermittent lockdowns in some states have also hit sales.
"Demand continues to be a challenge coupled with supply side constraints as well constraints in retail lending from NBFC’s. Normalcy in demand still seems quite distant and not expected before the festive season. Despite the positive trends in the rural markets, the annual outlook currently continues to be grim with projected sales to witness a decline range of 15% - 35% across various segments in FY21," said Ashish Harasharaj Kale, president, FADA.
Sales of commercial vehicles fell a massive 72.2 % to 19,293 units in July. Showroom sales of motorcycles and scooters also dropped 37.5% to 8,746,38 units during the month. Retail sales, however, improved sequentially from 7,90,118 units in sold June due to quicker recovery in demand for entry-level and executive segment of motorcycles in rural and semi-urban areas.