Passenger vehicle retail sales dip 1% in May as excessive heat, elections impacted demand: FADA

Domestic passenger vehicle retail sales declined in May due to the heatwave and general elections in India, industry body FADA said.

Domestic passenger vehicle retail sales declined 1% year-on-year in May, as blistering summer heat and elections impacted demand, automobile dealers' body FADA said on June 10.

Passenger vehicle registrations dipped to 3,03,358 units last month, as compared with 3,35,123 units in May 2023.

"Dealers cited the impact of elections, extreme heat and market liquidity issues as major factors for the dip in sales last month," the Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said.

Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also affected sales, he added.

Additionally, the month saw increased customer postponements and low enquiries, Mr. Singhania stated. Due to the extreme heat, the number of walk-ins to showrooms dropped by around 18%, he said.

Two-wheeler sales rose 2% to 15,34,856 units in May, as against 14,97,778 units in the same month last year.

Mr. Singhania said positive rural demand on account of good rains in some regions and improved finance availability kept the counters ticking.