Footfalls at auto dealers fall in June, so do RTO registrations
Vehicle registrations — a proxy for retail sales — were largely flat last month as heatwave conditions in several parts of the country forced potential buyers to defer their purchases.
Data collated by industry body Federation of Automobile Dealers Associations (FADA) showed as many as 1,895,552 vehicles were registered last month, a 0.73% rise from 1,881,883 vehicles sold in June 2023.
Two-wheeler registrations increased 4.7% from a year earlier to 1,375,889 units, while three-wheelers posted a 5.1% rise to 94,321 units.
Registrations of passenger vehicles, tractors and commercial vehicles fell by 6.8% (to 281,566 units), 28.4% (71,029 units) and 4.7% (72,747 units), respectively, dragging down industry volumes.
«June is traditionally one of the weakest months for India's auto retail. This year, while the monsoon progressed normally up to Maharashtra, it lost momentum, delaying rains in West Bengal, Bihar, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh. This exacerbated the effects of a severe heatwave in northwest India, contributing to a prolonged hiatus that not only intensified the heatwave but also delayed the sowing operations of kharif (summer sown) crops in northern and north-western regions, thereby impacting rural sales,» said Manish Raj Singhania, president, FADA.
In the two-wheeler segment, extreme heat led to a 13% on-year drop in showroom footfalls in June. Additionally, stalled monsoons and election-related market slowdowns impacted rural sales. The share of the rural market in total
