19% Decline in Car Retail Sales in September: Dealers Left with ₹79,000 Crore Worth of Unsold 7.9 Lakh Cars, Two-Wheeler Sales Down by 8.51%
In the month of September, the country witnessed a 9.26% year-on-year decline in retail vehicle sales. Automobile companies sold approximately 1.723 million vehicles last month, compared to 1.9 million vehicles sold in the same month last year.
Car sales, in particular, saw a significant drop of nearly 19% year-on-year. Car manufacturers sold 275,681 cars in September, whereas 339,543 vehicles were sold in the same month last year.
Festivals Fail to Boost Car Demand Despite 9.26% Drop in September Sales: FADA Report
The Federation of Automobile Dealers Associations (FADA) released its monthly sales report on October 7, revealing these statistics. According to the FADA report, festivals like Ganesh Chaturthi and Onam in September failed to increase car demand.
Dealers Face Stock Pile-Up Due to Decreased Demand
The dealers’ association reports that, due to the decline in demand, dealers have accumulated a stock of approximately 7.9 lakh vehicles, amounting to a 80-85 day inventory worth ₹79,000 crore.
FADA warns, “The passenger vehicle segment is facing a critical situation due to the high inventory levels at dealerships. If sales do not increase as expected in October, dealers could suffer significant losses.”
Two-Wheeler Sales Also Decline, While Three-Wheelers and Tractors See Growth
According to FADA, two-wheeler sales have also declined due to heavy rains and the Shradh period. Sales of bikes and scooters dropped by 8.51% compared to the same month last year. Two-wheeler companies sold 1,204,259 vehicles in September, whereas 1,316,300 two-wheelers were sold in the same month last year.
On the other hand, three-wheeler and tractor sales witnessed growth. In September, commercial vehicle sales saw a yearly decline of 10.45%, while three-wheelers recorded a 0.66% annual growth, and the tractor segment saw a significant 14.69% annual increase.
