On Wednesday, automobile dealers' body FADA (Federation of Automobile Dealers Associations) said that passenger vehicle (PV) retail sales in August declined 7.12 percent to 1.78 lakh units when compared to the same month last year. According to FADA, which collected vehicle registration data from 1,242 out of the 1,450 regional transport offices (RTOs), PV sales stood at 1.92 lakh units in August 2019.
Two-wheeler sales have declined 28.71 percent to 8,98,775 units last month against 12,60,722 units in August 2019. Commercial vehicle sales have slipped 57.39 percent to 26,536 units from 62,270 units in the same month last year.
Three-wheeler sales fell 69.51 percent to 16,857 units last month in comparison with 55,293 units in August 2019.
Total sales across categories declined 26.81 percent to 11.88 lakh units last month against 16.23 lakh units a year ago.
"With the start of festival season and the government's continued effort to open up the country, August saw good numbers when compared to immediate previous months," FADA President Vinkesh Gulati said, according to a PTI report.
He added that some recovery in sales was seen sequentially although on a year-on-year basis all categories, except tractors, reported de-growth. Customers who were undecided finally concluded their purchases during festivals of Janmashtami and Ganesh Chaturthi. Further, entry-level passenger vehicles were in high demand due to an increased preference for personal mobility amid the current pandemic.
However, the overall demand is still not back to pre-COVID-19 levels as banks and non-banking finance companies (NBFCs) continue to have a cautious approach towards funding, especially commercial vehicles, he added.