Passenger vehicle sales reported a marginal decline of three per cent during December 2018, while two-wheeler sales grew 11 per cent, according to data compiled by the Federation of Automobile Dealers’ Associations, an association of automobile dealers in the country.
Amid huge discounts offered for new purchases, buyer sentiment continued to be poor during the last month of the calendar year 2018. PV sales stood at 2,02,585 units during December 2018, when compared with 2,08,988 units, posting a decline of three per cent. Also, December 2018 sales were seven per cent lower when compared with the preceding month’s sales of 2,17,922 units.
For the full calendar year 2018, PV sales saw a decline of two per cent at 19,17,750 units when compared with 19,65,630 units in 2017.
The two-wheeler segment managed to maintain its momentum. Total two-wheeler sales were up 11 per cent at 11,41,209 units in December 2018 (10,29,311 units in December 2017). But December 2018 sales were 18 per lower than the preceding month’s sales of 13,83,572 units.
Post-festive season, fuel prices have dropped to their lowest levels in the last three months. Although liquidity was a major constraint in December, a number of initiatives are being taken to ease the situation, the effects of which would be felt in this quarter.
“We are seeing initial signs of a revival in the industry as compared to the recent festival season. Passenger vehicle sales arrested further de-growth, as good retail momentum in the last 15 days indicates sentiment turning positive. 2W shows positive growth on a year-on-year basis, although the month-on-month trend shows a decline,” Ashish Harsharaj Kale, President, FADA said.
Moderation in wholesale billing in December and reasonably good retail sales towards the month-end have helped in reducing the high PV inventory to reasonable levels in many markets.
The CV inventory reduced slightly in December, but continues to be above normal, while the inventory of 2W Dealers still continues to be very high.
According to a survey conducted by FADA among its members, the current inventory of PVs ranges from 35-40 days, 2W ranges from 55-60 days and CV ranges from 35-40 days.
Kale said FADA would come out with vehicle registrationd data on a monthly basis between the 7th and 10th of every month.