Automobile sales rose 9 percent year-on-year in the June quarter FY25 with all segments barring tractors, reporting growth, dealer body FADA said on Monday. Overall retail sales rose to 61,91,225 units in the April-June period from 56,59,060 units in the same quarter of FY24.
Retail sales of passenger cars rose by 2.53 percent to 9,20,047 units, compared to 8,97,361 units last year.
“Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustainable growth in the PV sector,” FADA President Manish Raj Singhania said in a statement.
Dealers reported significant impacts from elections, extreme heat and liquidity issues in the market.
Extreme heat caused an 18 percent drop in showroom visits in May, and inventory levels reached an all-time high of 62 to 67 days in late June, Singhania said.
He added: “Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to the extreme heat and delayed monsoon, resulting in 15 percent fewer walk-ins.”
Retail sales of two-wheelers stood at 45,54,255 units in the April-June period, an increase of 12.56 percent compared to 40,46,169 units in the same period last year.
“The recovery in the motorcycle sector is promising, largely due to the emerging performance in rural areas, although these are early trends,” Singhania said.
The segment also faced major challenges due to the extreme heat and the election period, which led to a 13% decrease in the number of visits to showrooms during the months of May and June.
Sales of three-wheelers rose 11.36 percent to 2,72,691 units in the first quarter from 2,44,878 units in the same period of the previous financial year.
Retail sales of commercial vehicles witnessed a slight increase to 2,46,513 units, compared to 2,44,834 units earlier.
“The commercial vehicle segment experienced a slowdown due to elections and a pause of infrastructure projects. In April, the elections affected sentiment, causing a delay in expansion plans. In addition, limited financing options and regional challenges, such as water scarcity, impacted performance further.” Singhania said.
Tractor retail sales declined 12.44 percent to 1,97,719 units from 2,25,818 units last year.
The industry body said it remains committed to advocating for prudent inventory control, improved financing options and strategic planning to ensure resilience and sustainable growth of the automotive retail sector.
The Federation of Automobile Dealers Associations (FADA) represents more than 15,000 car dealers with more than 30,000 points of sale across the country.
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