Hit by Tepid Consumer Response, Auto Sales Continued to Fall in January 2020

Passenger vehicle retail sales in January this year declined 4.61% to 2,90,879 units as compared to the same month in 2019.

New Delhi: A prominent automobile dealer body on Thursday said that India’s passenger vehicle (PV) retail sales in January declined 4.61% to 2,90,879 units as compared to same month last year, hit by tepid response by end customers.

According to the Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,223 out of the 1,432 regional transport offices (RTOs), PV sales stood at 3,04,929 units in January 2019.

Two-wheeler sales declined 8.82% to 12,67,366 units last month as compared with 13,89,951 units in January 2019.

Commercial vehicle sales declined 6.89% to 82,187 units as compared to 88,271 units in January 2019. Three-wheeler sales, however, rose 9.17% to 63,514 units last month as compared with 58,178 units in January 2019.

Total sales across categories declined 7.17% to 17,50,116 units last month as against 18,85,253 units in the year-ago month.

“Auto sales continue to be in the negative territory in the month of January, except for three wheelers, with many consumers still not concluding on their decisions. Ongoing transition of BS-IV to BS-VI is also a factor in delayed purchase decision,” FADA president Ashish Harsharaj Kale said in a statement.

Overall weak economic sentiment continues and even the Budget 2020, although an inclusive budget with growth drivers for the mid to long term, did not have any direct measures nor any immediate growth enabling initiatives for the auto sector, he added.

On sales outlook, Kale said with continued weak consumer sentiment and the overall economic situation as well as the upcoming transition to BS-VI regime, the near-term demand situation will continue to be dynamic.

“We appeal to the government to continue announcing positive measure[s], specifically for the auto industry, as well as for the overall economy which will help us return to growth trajectory at the earliest,” he added.

The data put out by FADA corresponds to other numbers put out by industry associations like SIAM (Society for Indian Automobile Manufacturers) and individual companies.

(With inputs from PTI)