New Delhi, July 7 (IANS) Total automobile retail sales across segments in India grew 4.84 per cent year-on-year in June to cross 20.03 lakh units, driven by festival and marriage-season demand, Federation of Automotive Dealers Associations (FADA) said on Monday.

“Segment-wise, every category closed in the green with two-wheelers at 4.73 per cent, three-wheelers at 6.68 per cent, passenger vehicles at 2.45 per cent, commercial vehicles at 6.6 per cent, tractors at 8.68 per cent and construction equipment at 54.95 per cent,” said FADA president C.S. Vigneshwar.

“While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns,” he said.

“Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,” Vigneshwar added.

Passenger vehicle retails slipped 1.49 per cent month-on-month yet delivered a 2.45 per cent year-on-year uplift. “Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support. Some dealers indicated that certain PV manufacturers have introduced compulsory billing procedures — such as automatic wholesale debits — to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues,” said Vigneshwar.

CV retails declined 2.97 per cent month-on-month while achieving a robust 6.6 per cent year-on-year expansion. Vigneshwar noted that early-month deliveries buoyed volumes before monsoon-induced slowdowns and constrained liquidity dampened enquiries and conversions.

“Members pointed to the impact of new CV taxation and mandatory air-conditioned cabins, which have elevated ownership costs, alongside muted infrastructure demand. Overall, June reflected a resilient CV segment adeptly navigating cost pressures and a softening economy,” he explained.

FADA said that July is likely to witness mixed fortunes driven by agrarian tailwinds and school reopenings, yet tempered by seasonal headwinds, elevated price points and liquidity constraints.

“Dealer sentiment appears tilted towards slowdown-flat and de-growth expectations (42.8 per cent and 26.1 per cent) exceed growth forecasts (31.1 per cent).

It noted that in the 2W segment, early monsoon showers and renewed rural activity have spurred interest, yet heavy rainfall, variant shortages, and price increases effective July are moderating conversions.

PV faces high-base effects, limited new-model launches and tight financing, offset in part by festival planning and fresh incentive schemes. CV continues to grapple with muted infrastructure demand, higher ownership costs from new taxation and mandatory AC-cabin norms, even as extended order pipelines provide some relief.

For its outlook ahead, FADA has adopted “a stance of cautious optimism-leveraging rural demand drivers and government capex while remaining agile to navigate monsoon-related disruptions, supply constraints and liquidity pressures.”

–IANS

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