After two months of positive sales, auto sales fall by 15 % in December

After two months of positive sales during the festive season in October and November, overall vehicle registrations fell by 15 per cent in December. While two-wheeler sales fell 16%, passenger vehicle sales were down 9% and commercial vehicles registered a de-growth of 21%. Only three wheeler sales were up by a per cent.

Despite robust inquiries and offers and discounts at a peak, customers did not conclude their purchase as expected, indicating a continued weakness in consumer sentiment, said dealers.

With degrowth in December being the highest in this financial year, Federation of Automobile Dealers Associations (FADA) raised concerns on falling After two months of positive sales during the festive season in October and November, overall vehicle registrations fell by 15 per cent in December. While two-wheeler sales fell 16%, passenger vehicle sales were down 9% and commercial vehicles registered a de-growth of 21%. Only three wheeler sales were up by a per cent.

Despite robust inquiries and offers and discounts at a peak, customers did not conclude their purchase as expected, indicating a continued weakness in consumer sentiment, said dealers.

With degrowth in December being the highest in this financial year, Federation of Automobile Dealers Associations (FADA) raised concerns on falling auto sales and shifted its stance to very cautious for the near and mid-term as the industry inches towards BS VI transition.

“Degrowth in December sales was not on expected lines as the inquiry levels all through the month were quite robust. Consumer sentiment continues to be very weak as customers did not conclude the purchases even after inquiring and despite the best offers being available," FADA President Ashish Harsharaj Kale.

He said that the sharp decline in growth had denied the dealer community an opportunity to reduce its BS-IV inventory making the transition to BS-VI trickier.and shifted its stance to very cautious for the near and mid-term as the industry inches towards BS VI transition.

“Degrowth in December sales was not on expected lines as the inquiry levels all through the month were quite robust. Consumer sentiment continues to be very weak as customers did not conclude the purchases even after inquiring and despite the best offers being available," FADA President Ashish Harsharaj Kale.

He said that the sharp decline in growth had denied the dealer community an opportunity to reduce its BS-IV inventory making the transition to BS-VI trickier.