Retail sales of passenger vehicles (PVs) fell by 11% last month to 2.43 lakh units compared with the almost 2.75 lakh units sold in July 2018, according to data released by the Federation of Automobile Dealers Associations (FADA).
The data showed that two-wheeler retail sales declined by 5% to 13.32 lakh units against the 14.03 lakh units in the year-ago month.
Commercial vehicle (CV) sales dropped by 14% to 23,118 units against 26,815 units in July 2018.
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Three-wheeler sales, however, grew 3% to 55,850 units in July 2019, against 54,250 units in the same month a year ago.
Total sales across categories declined by 6% to about 16.54 lakh units in July 2019 against the over 17.59 lakh units in July 2018.
“Consumer sentiment and overall demand continued to be quite weak across all segments and most geographies. July sales continue to be in the negative zone year-on-year. Although, some respite is seen with the growth in MoM (month-on-month) numbers which is mainly due to the revival of the monsoon bringing in some positivity and also [with] June having the second lowest volume base this calendar year after February,” FADA president Ashish Harsharaj Kale said.
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While PV sales rose7% over June 2019, two-wheeler sales rose 4% and that of three-wheelers 21%. However, CV sales saw decline month-on-month as well with sales falling 19%.
FADA said the steps taken by PV makers had helped cut inventory to almost the ideal 21-day level. However, CV and two-wheeler inventory continues to be “very high.” Stating that with the weakness in demand, especially for CVs, the current inventory is a worry for the dealers, especially given the impending transition to BS-VI being just six months away, FADA asked the OEMs to help regulate wholesale supplies.