Retail sales of vehicles declined by 8 per cent year-on-year in July due to a decline in registration of passenger vehicles, two-wheelers and tractors.
Auto sector hopes from festive season
If you are planning to buy a car, then there is good news for you. In view of the festive season, automobile companies are in the process of increasing sales. Due to this, companies are also preparing to give big discounts. In such a situation, your dream of getting a car can come true. In fact, the auto industry expects the arrival of new cars and increase in production in this festive season. car sales will be fast.
Decline in retail sales of vehicles
However, the sales of automobiles generally increase during the festive season. This year the festive season will start from Rakshabandhan on 11th August and will continue till Diwali on 25th October. Why are you getting ready to give a big discount, let us first know it. In fact, where the wholesale sales have increased, the retail sales have been less in the last four months. A large number of vehicles are stocked with the dealers. In the beginning of this year, Maruti Suzuki’s inventory was around 1,20,000, which has now increased to more than 2 lakhs. According to a report, the retail sales of car companies have decreased by 4.6 percent in the month of July.
Waiting period of many vehicles increased
Here, the waiting period of many vehicles is very high, while the supply of some is more than the demand. Vehicles whose demand is very high, their demand is expected to increase further during the festive season. In such a situation, companies can give more discounts to entice customers. Federation of Automotive Dealers President Vinkesh Gulati says that he expects this year to be the best festive season for passenger vehicle sales due to new offerings and better production activities. The industry is producing an average of more than three lakh units in the last 4-5 months, he said. This has helped the retailers.
The challenges before the sector are no less
However, challenges like monsoon, inflation, China-Taiwan war also remain. FADA represents more than 15,000 automobile dealers across the country. According to Hardeep Singh Brar, Vice President, Kia India, there are signs that the supply chain problems are reducing. At the same time, Tata Motors President Shailesh Chandra said that the company expects improvement in the supply of vehicles with better semiconductor availability in the second quarter. Now talking about discounts, Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra can offer huge discounts on their entry models and less popular vehicles. In the festive season, Maruti Suzuki can offer good discounts on its Alto 800, Espresso, Wagon R and Brezza.
Passenger vehicle sales down in July
Now let us also talk about the figures of decrease in the sales of passenger vehicles in July. Retail sales of vehicles declined by 8 per cent year-on-year in July due to a decline in registration of passenger vehicles, two-wheelers and tractors. Passenger vehicle retail sales declined by 4.6 per cent year-on-year to 2,50,972 units in July 2022 as compared to 2,63,238 units in July 2021. At the same time, retail sales of two-wheeler vehicles declined by 11 per cent to 10,09,574 units last month as compared to 11,33,344 units in the year-ago period.