Retail Auto Sales Slump To 18-Month Low In June
Retail automobile sales, measured by number of new vehicles registered across the country, slumped in June, a seasonally weak month, its lowest in 18 months as buyers stayed away amid a consumption slowdown in India.
Vehicles registrations fell 16 percent over the previous month and slipped 14 percent on a yearly basis, according to data from 1,171 regional transport offices in 31 states and union territories collated by BloombergQuint from the website of the Ministry of Road, Transport and Highways. Sales fell across categories.
The numbers reflect the number of vehicles sold after all payments and statutory dues and insurance costs have been paid and does not include bookings.
Sales usually soften in June with the beginning of monsoon as buyers hold of purchases till the auspicious festival season. Still, it douses hopes of an early revival in the slowdown continuing since the last festival season. And it only reinforced poor demand highlighted in BloombergQuint survey of dealers despite a brief spurt in demand during Eid festivities.
Registrations of two-wheelers fell 15 percent sequentially and 14 percent year-on-year, making it the worst-hit category with the highest inventory. Inventory remains higher than the average of all auto segments.
Motorcycles and scooters witnessed a sequential decline of 15 percent and year-on-year fall of 13.4 percent. The moped segment was worst off with a plunge of 22 percent sequentially and 31.4 percent on a yearly basis.
Retail sales as reflected by registrations fell more than 21 percent year-on-year even as carmakers resorted to production cuts for the third straight month. That, however, helped inventory at dealerships to decline. Retail sales have been higher than factory-gate shipments for the last few months. Registrations of the category declined 14.4 percent month-on-month.
Registration of trucks, buses and other commercial vehicles declined 20 percent year-on-year and 15 percent sequentially in June. Manufacturers in the category have been cutting output, helping lower inventory with dealers.
Farm equipment and tractors sales have been falling since December. Registrations in this category declined 7.9 percent sequentially and 20.7 percent on a yearly basis.