Automobile sales witness -9.26% decline in September: FADA
The Hindu
FADA reports significant decline in automobile sales, urges strategic inventory management and targeted festive promotions for recovery.
The overall automobile sales witnessed a significant decline of -9.26% in September, industry body FADA (Federation of Automobile Dealers Association) said on Monday (October 7, 2024).
Ganesh Chaturthi and Onam failed to ignite the demand, FADA said.
The two-wheeler segment witnessed a year-on-year (YoY) decline of 8.51%, driven by weak consumer sentiment, low inquiries, and delayed purchases due to heavy rains and seasonal factors like Shraddh, the FADA said in a statement.
Passenger Vehicles like cards, SUVs witnessed a steep YoY decline of 18.81%.
Commercial vehicles witnessed a YoY decline of 10.45%, with only marginal month-on-month growth of 1.46%, reflecting subdued market conditions and weak government spending, the body said.
The three-wheelers and tractor segments reported a marginal growth of 0.66% YoY and 14.69% YoY respectively, attributed to positive customer engagement and increasing demand for e-rickshaw options, it said.
Passenger Vehicles (PV) Dealers faced an all-time high inventory level of 80-85 days, equivalent to 7.9 lakh vehicles worth ₹79,000 crore due to aggressive OEM dispatches. “The dealers are under financial pressure, with increased cash flow challenges,” the FADA added.
