Automobile retail sales in India dropped 8% in July because of this reason

Car sales in the country fell 8% in July this year due to lower registrations of passenger cars, two-wheelers and tractors.

According to data released by the Federation of Automobile Dealers Associations (FADA) on Aug. 4, total auto sales in July were 14,36,927 units, compared to 15,59,106 units in July 2021, PTI news agency reported.

FADA, which represents more than 15,000 car dealerships, said it had collected data for July from 1,334 of 1,409 RTOs across India.

Last month, passenger car sales fell 5% to 2,50,972 units, compared to 2,63,238 units in the same period a year ago.

Two-wheeler sales in July this year were 10,09,574 units, down 11% from 11,33,344 units in the same month last year, FADA data showed.

Tractor sales also fell to 59,573 units in July, down 28% from 82,419 units in the same period a year ago.

However, tricycles and commercial vehicles saw their retail sales increase in July.

Tricycle sales rose 80% last month to 50,349 units, compared to 27,908 units in July 2021. By contrast, commercial vehicle sales were 66,459 units in July, compared to 52,197 units in the same month last year.

Speaking to PTI on August 4, FADA President Vinkesh Gulati pointed out that when it comes to passenger car sales, although there was a decline in the numbers in July, the segment continued to see the introduction of new models, especially compact ones. Sport Utility Vehicles (SUVs), which promote growth.

Speaking of the decline in retail sales of two-wheelers, Gulati said: “Demand for two-wheelers has been poor as rural India continues to underperform. This coupled with high inflation, erratic monsoons and high cost of ownership continue to keep customers at the bottom of the pyramid at bay. .”

“Commercial vehicle retailing figures continue to see good demand as the government’s infrastructure effort is helping customers complete their purchases. Apart from this, the bus segment also witnessed the start of a demand recovery as educational institutions and offices are back to normal operation,” Gulati further told the news agency.

(with PTI inputs)

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