Auto sales continues to bleed. The slowdown in the auto industry is far from over.
Experts were expecting some revival post the General elections, however not much has changed.
If we look at the vehicle registration data for month of June – it shows a 5.4% decline This was the third straight decline in monthly vehicle sales this fiscal.
The total sales for the quarter ended June, subsequently, saw a decline of 6% compared to the same period last year, as per the data released by Federation of Automotive Dealers Associations (FADA), an industry body.
Passenger vehicles sales saw some respite with marginal decline of about 1% in first quarter to 7,28,785 units. Other categories such as commercial vehicles and two-wheeler saw 14% and 6.4% decline, respectively. Three-wheeler sales were down 6.1%.
Despite starting the month with a positive outlook and hope, the monthly sales ended in a de-growth due to continued liquidity tightness and a much-delayed monsoon. Despite inquiry levels being reasonably strong, retail sales got affected as consumer sentiment continued to be weak and purchase postponement was seen across all segments.
July monsoon finally in and budgets for new government being formalized, we might see some positive news for industry.