Dealers’ body FADA on Monday said that automobile retail sales grew by 9 percent year-on-year in the June quarter of FY25, with all segments except tractors registering increment. Total retail sales increased to 61,91,225 units in the April-June period from 56,59,060 units in the same quarter of FY24.
Passenger vehicle retail sales rose 2.53 percent to 9,20,047 units from 8,97,361 units a year ago.
He said dealers reported significant impacts from the election, extreme heat and liquidity issues in the market. Singhania said showroom footfalls declined 18 percent in May due to extreme heat, with inventory levels reaching a 62-67-day high by the end of June.
He said that “Despite substantial discounts aimed at increasing product availability and growing demand, market sentiment remains weak due to extreme heat and delayed monsoon, resulting in 15 percent less footfall,”. Retail sales of two-wheelers in April-June stood at 45,54,255 units, up 12.56 percent from 40,46,169 units in the year-ago period.
Singhania said that “The recovery in the two-wheeler segment is promising, mainly due to the emerging performance in rural areas, although these are early trends,”. He said the segment also faced significant challenges from extreme heat and the election period, which resulted in a 13 percent decline in showroom walk-ins during May and June.
Three-wheeler sales rose 11.36 percent to 2,72,691 units in the first quarter from 2,44,878 units in the same period last fiscal. Commercial vehicle retail sales witnessed marginal growth at 2,46,513 units compared to 2,44,834 units earlier.
Singhania said that “The commercial vehicle segment experienced a decline due to elections and disruption in infrastructure projects. In April, elections weakened sentiment, leading to a delay in expansion plans”.
Tractor retail sales drop 12.44 percent to 1,97,719 units from 2,25,818 units a year ago.