Passenger vehicle sales decline 1% in May amid these reasons

Domestic passenger vehicle retail sales fell by 1% year-on-year in May, impacted by extreme summer heat and elections, according to the Federation of Automobile Dealers Associations or FADA.

Passenger vehicle registrations decreased to 3,03,358 units last month, compared to 3,35,123 units in May 2023. FADA President attributed the decline to elections, extreme heat, and market liquidity issues.

"Dealers cited the impact of elections, extreme heat and market liquidity issues as major factors for the dip in sales last month," the Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said.

Also read/watch - Paytm to cut jobs in restructuring efforts; offers outplacement support and bonuses for laid off staff

Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by original equipment manufacturers (OEMs) also affected sales, he added.

Additionally, the month saw increased customer postponements and low enquiries, Singhania stated.

Two-wheeler sales rose 2 per cent to over Fifteen lakh thirty-four thousand units in May, as against fourteen ninety seven thousand units in the same month last year. The extreme heat led to an 18% drop in showroom walk-ins.