Passenger vehicle retail sales fall 7% in June due to heat wave: FADA

Sales in slow lane: The passenger vehicle retail sales in India clocked a 7 per cent on-year fall in June as dry and hot weather conditions resulted in 15 per cent less showroom footfalls, as per industry body Federation of Automobile Dealers Associations (FADA).

Overall passenger vehicle registrations stood at 2,81,566 units last month, as compared to 3,02,000 units in June 2023. “Even though we saw an improved product availability and substantial discounts to create a stimulating demand, market sentiment continues to remain subdued due to extreme heat resulting in 15 per cent less walk-ins and delayed monsoons," the Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said.

As per Singhania, the month of June this year has highlighted the growing shift towards sustainable mobility, with year-on-year (YoY) increases in most electric vehicle categories. However, on a month-on-month (MoM) basis, the performance was mixed bag, showcasing seasonal and environmental challenges.

EV sales 

The electric passenger vehicle (PV) category saw a slight decline in market share from 2.5 per cent in May to 2.4 per cent in June and experienced a modest YoY decrease of 1.3 per cent. Conversely, the electric two-wheeler (2W) segment captured 5.8 per cent of the market share in June, up from 3.5 per cent last year, marking a significant YoY growth of 72.49 per cent although it faced a slight MoM decline.

The commercial electric vehicles (CV) showed progress with a market share increase to 0.7 per cent in June from 0.57per cent a year ago, reflecting a YoY growth of 16.6 per cent. The electric three-wheeler (3W) segment maintained a stable market share of 55.5 per cent, achieving a YoY growth of 8.68 per cent.

As we look forward to the coming months, the steady progress of the monsoon and the government's favorable policies towards green technologies are expected to further boost the electric vehicle market. FADA remains committed to supporting this transition towards sustainable mobility and will continue to promote eco-friendly practices across the auto retail industry," said Singhania.

(With PTI inputs)