Passenger Vehicle Sales Decline Amid Festive Season Onset

India's passenger vehicle retail sales dropped by 5% in August due to delayed purchases, poor sentiment, and heavy rains. Inventory levels have reached 70-75 days, prompting FADA to call for banks and NBFCs to control dealer funding. The industry must recalibrate supply strategies to avoid a potential crisis.

Passenger vehicle retail sales in India saw a 5 per cent year-on-year decline in August due to deferred customer purchases, souring consumer sentiment, and ongoing heavy rains, the Federation of Automobile Dealers Associations (FADA) reported on Thursday.

The total passenger vehicle registrations in August stood at 3,09,053 units, down from 3,23,720 units in the same month last year.

Despite the festive season's arrival, market strain remains significant, with inventory levels hitting critical highs. Stock days now range between 70-75 days, and inventory values touch Rs 77,800 crore, according to FADA President Manish Raj Singhania.

(With inputs from agencies.)