Vehicle registrations rise 13.84% in July driven by rural demand, discounts
Dispatches of passenger vehicles last month, though, declined by about 2% with automakers limiting wholesales amid elevated stock levels in the market. As per industry estimates inventory of passenger vehicles in the channel stands at 407,000 units. Dealers peg the numbers higher and said car stocks in the network range between 67-72 days.
Auto retailers body FADA (Federation of Automobile Dealers Associations), however, expect good retails in the upcoming festive season. Challenges though remain due to high stocks in the passenger vehicle segment, weak consumer sentiments in certain areas stemming from economic uncertainties and uneven spread of the monsoons.
FADA Vice President C S Vigneshwar said, “Following a deficient June, monsoons in India have intensified, resulting in above-normal cumulative rainfall for July. However, the geographical distribution was uneven, with Southern and Central India receiving excess rain, while 10 meteorological divisions experienced a double-digit deficit. Kharif sowing has increased by 2.3% since last year, but these figures are somewhat misleading due to poor sowing activity in the previous year caused by El Nino disruptions.” Compared to July 2023, the sown area has actually decreased by 2.4%, according to experts.
Despite these challenges, India’s automobile retail sector saw a growth of 13.84%, with almost all categories witnessing an increase. While two-wheeler sales grew by 17% (to 1,443,463 units), three-wheelers went up by 13% (to 110,497 units, passenger vehicles
