Even though people are still in love with luxurious and supercars but automobile sales have fallen down last month. Most of the customers decided not to make a purchase before the result of general elections. The sales of vehicles have been declined to 247,541 to 17% units. The tight liquidity and high costs of insurance can be the reason behind it according to the Indian Automobile manufacturer’s society. The drop in passenger vehicle sales was the sharpest since October 2011. The economic growth has slowed down and the sales of commercial vehicles fell down to 68,680 to 6% units. According to Fugato Sen., ‘If you look at the retail numbers, sales have fallen across categories.’ Due to the decrease in demand, the manufacturers are also preventing themselves from manufacturing more vehicles.
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When seen the SIAM data, the retail sales of all passenger vehicles has been declined to 1.28% and commercial vehicles have gone down to 11%. The two-wheeler’ retail demand dropped down to 7% in the month of April. Sen, also explained that there are various adverse factors due to which sales have gone down. Mainly tight liquidity and high insurance cost is the reason due to which there is uncertainty seen in the buyer’s mind.
Sales went down of both heavy and medium commercial vehicles
In the last month, the sales of heavy and medium commercial vehicles have gone down to 13.6% which comprises of 24,725 units. This data was produced by SIAM and that’s why there are no chances of doubt. Talking about light commercial vehicles, the sales have gone down to 1.1%, which comprises of 43,955 units.
The two-wheeler sales in both urban and rural areas have fallen down to 16.4% where demand for scooters has dropped to 489,852 to 26% while for motorcycles it has gone down to 1.08 million units. According to industry experts, it has been said that demand would definitely revive in the month of June when the new government will be formed. So, the manufacturers are cutting down the supply due to lower demand for vehicles.
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As believed by Sen, there will be a slowdown for two months more and the demand for vehicles can be increased after the results of elections are out. The overall vehicle sales have gone down to 2 million to 15.9% units in the month of April. Thus, the rise in sales will be seen in a month or two when the new government will be formed.