Car Market Stalls as Sales Tumble 9.26% in September

8 Oct 2024 , 12:25 PM

Weak consumer sentiments and above-normal rainfall dampened retail sales of passenger vehicles, two-wheelers, and commercial vehicles in September, resulting in a 9.26% year-on-year drop to 1,723,330 units, according to the Federation of Automobile Dealership Associations (Fada) on Monday.

While passenger vehicle retail sales have been declining for several months, this is the first monthly sales drop at an aggregate level (across segments) since the beginning of the fiscal year, indicating a broad-based slowdown in the world’s largest two- and three-wheeler market and third-largest car market.

C S Vigneshwar, president of Fada, stated to ET that seasonal variables such as the 16-day Shraddh or Pitru Paksha in the second half of September, along with severe rainfall and a slowing economy, aggravated the problem, leaving merchants with record high inventory levels.

The sharp drop in PV sales is “signalling an alarming trend of declining consumer demand and deteriorating market sentiment,” he said.

With the first leg of the festive season, which began with Ganesh Chaturthi and Onam, failing to ignite demand, automakers and dealers are now hoping for a comeback during the present Navratri and Diwali festivals.

For feedback and suggestions, write to us at [e-mail]