Indian automotive retail declined 8 per cent YoY in March 2019 to 16,82,656 units, recent data from the Federation of Automobile Dealers Association (FADA) revealed. The retail sales for March 2018 stood at 18,21,538 units.
FADA releases number based on VAHAN data which covers about 80 per cent of the country's RTO.
As per the report, the retail sales in all the segments are in red for the month of March. While two-wheeler and three wheeler posted single digit decline (7% and 6%), commercial vehicle and passenger vehicle declined 12 per cent and 10 per cent, respectively.
Retail sales March 2019 March 2018 % change
Passenger Vehicles 2,42,708 2,69,176 -10%
Commercial Vehicle 61,896 70,203 -12%
Two-wheeler 13,24,823 14,25,356 -7%
Three-wheeler 53,229 56,803 -6%
Total 16,82,656 18,21,538 -8%
However, inventories in all auto segments have reduced to 40-50 days, down from 60 days for passenger vehicles and 90 days for two-wheelers.
The inventory reduction came after several OEMs like Maruti Suzuki and Hero MotoCorp reduced their production for the month.
Ashish Kale, President, FADA said, “F A D A appreciates and applauds the bold steps taken by majority of OEMs for regulating production to current demand and helping dealers in reducing inventory.”
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According to FADA, sales are expected to stabilize to their normal range in the next 4-6 weeks.
Kale further said, “A stable government at the Centre, an above average or average monsoon and most importantly a continued easing monetary policy by the RBI, which has been initiated by the new RBI Governor, resulting in liquidity availability, are factors which will once again begin the positive run of Indian Auto Retails and we expect that to continue into the festive season.”