Passenger Vehicle Sales Drop 7% in June 2024: Here's Why

Passenger Vehicle Sales: Overall passenger vehicle registrations stood at 2,81,566 units last month, as compared to 3,02,000 units in June 2023.

Passenger Vehicle Sales In June 2024: Passenger vehicle retail sales in India witnessed a 7% on-year decline in June as severe heatwave conditions resulted in 15% less showroom walk-ins, industry body FADA (Federation of Automobile Dealers Associations) said on Friday. Overall passenger vehicle registrations stood at 2,81,566 units last month, as compared to 3,02,000 units in June 2023.

Why Did PV Sales Plunge In June?

"Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to extreme heat resulting in 15% less walk-ins and delayed monsoons," Manish Raj Singhania, FADA President, said in a statement. Dealer feedback highlights challenges such as low customer inquiries and postponed purchase decisions, he added. 

Inventory Reached All-Time High

Singhania also highlighted that inventory levels of passenger vehicles have reached an all-time high, ranging from 62 to 67 days. With the festive season still some time away, it is crucial for passenger vehicle Original Equipment Manufacturers (OEMs) to exercise caution, he stated.

Effective inventory management strategies are essential to mitigate financial strain from high-interest costs, Singhania stated. "FADA strongly urges passenger vehicle OEMs to implement prudent inventory control and engage proactively with the market," he added.

Two-Wheeler Retail Sales

Two-wheeler registrations rose 5% year-on-year to 13,75,889 units in June. Factors such as extreme heat resulted in 13% less walk-ins by probable customers in showrooms, Singhania said. Stalled monsoon and election-related market slowdowns particularly affected rural sales, which fell from 59.8% in May to 58.6% in June, he added.

Commercial Vehicle Sales

The commercial vehicle sales dropped 5% to 72,747 units last month, from 76,364 units in June 2023. "The industry continues to face de-growth, impacted by high temperatures affecting the agricultural sector and infrastructural project slowdowns," Singhania stated.

Overall retail sales rose marginally year-on-year to 18,95,552 units in June. 'In the passenger vehicle segment, high inventory levels and ongoing low market sentiment necessitate cautious management,' the industry body said.

It stated that vehicle registration data for the month was collated from 1,567 out of 1,700 RTOs across the country.