On Monday, Federation Of Automobile Dealers Associations (FADA) said Automobile retail sales increased 9% per year in June quarter FY25 with all segments, reporting growth, barring tractors, dealers’ body. Total retail sales increased to 61,91,225 units in the April-June period from 56,59,060 units in the same trimester of FY24.
Passenger vehicle retails rose 2.53% to 9,20,047 units as against the previous year 8,97,361 units.
Manish Raj Singhania President of FADA gave a statement,
“Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth in the PV segment,”.
He also noted, Dealers reported important impacts from elections, extreme heat and market liquidity issues.
The uttermost heat led to an 18% drop in showroom walk-ins in May, with inventory levels reaching an all-time high of 62-67 days by the end of June, Manish Raj Singhania said.
He also added, “Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to the extreme heat and delayed monsoons, resulting in 15 per cent fewer walk-ins,”.
Two-wheeler retails stood at 45,54,255 units in April-June, up 12.56% as compared with 40,46,169 units in the Previous year quarter FY24.
Singhania said, “The recovery in the two-wheeler segment is promising, largely due to the emerging performance in rural areas, although these are early trends,”.
He also stated, The segment also came across important challenges from extreme heat and the election period, resulting in 13% depletion in walk-ins in the showrooms during May and June.
Three-wheeler sales increased 11.36% to 2,72,691 units in the first quarter from 2,44,878 units in the same quarter year ago.
Commercial vehicle retail sales experienced marginal rose at 2,46,513 units as against 2,44,834 units earlier.
“Commercial vehicle segment experienced a slowdown due to the elections and a pause in infrastructure projects. In April, elections dampened sentiment, causing delays in expansion plans. Additionally, limited financing options and regional challenges, such as water scarcity, further impacted performance,” Manish Raj Singhania said.