June 10 (Punjab Khabarnama) : Domestic passenger vehicle retail sales declined by one per cent year-on-year in May as demand was hit by scorching heat and elections. Industry body FADA gave this information on Monday. Passenger vehicle registrations declined to 3,03,358 units in May as against 3,35,123 units in May 2023.
Manish Raj Singhania, President, Federation of Automobile Dealers Association (FADA), said, “Dealers have cited elections, scorching heat and cash crunch in the market as the main reasons for the decline in sales last month.” He said that despite better supply, some pending bookings and discount schemes, lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also affected sales.
Singhania said that the number of customers visiting the showroom has declined by about 18 per cent due to extreme heat. Two-wheeler sales grew by two per cent to 15,34,856 units in May as against 14,97,778 units in the same month last year. Retail sales of three-wheelers rose 20 per cent year-on-year to 98,265 units last month.
Commercial vehicle sales grew four per cent to 83,059 units last month as against 79,807 units in May 2023. FADA represents over 15,000 motor vehicle dealerships. It has collected vehicle retail data from 1,360 of the 1,503 RTOs across the country.
