NEW DELHI: Auto retail sales declined over 9% year-on-year in Sept amid a massive build-up of passenger vehicle inventory due to sluggish demand, dealer’s body FADA said on Monday.
The overall registrations declined to 17.2 lakh units last month from 19 lakh units in Sept 2023, as most of the categories, including passenger vehicles and two-wheelers, witnessed a year-on-year (YoY) drop.
“Despite the onset of festivals such as Ganesh Chaturthi and Onam, dealers have reported that the performance has been largely stagnant,” Federation of Automobile Dealers Associations (FADA) president C S Vigneshwar said. Passenger vehicle sales declined 19% YoY to 2,75,681 units last month from 3,39,543 units in the year-ago period.
“Seasonal factors such as Shraaddh and Pitrapaksha, coupled with heavy rainfall and a sluggish economy, have exacerbated the situation,” Vigneshwar said.
Two-wheeler retail sales saw a dip of 8% YoY to 12,04,259 units due to low consumer sentiment, poor inquiries, and reduced walk-ins, FADA said.
Commercial vehicle registrations declined 10% YoY last month to 74,324 units. While there was positive sentiment and marginal growth in regions supported by infrastructure projects, overall demand remained weak due to low govt spending, extended monsoon delays and seasonal challenges, the industry body said.
Three-wheeler retail sales rose marginally to 1.1 lakh units last month. Tractor sales rose 15% YoY to 74,324 units last month.