The sales of passengers vehicles have registered drop off by 0.8% year-on-year to 2,63,773 units in November. A sharp decline of 10.8% in dispatches of passenger cars to 1,60,306 has contributed significantly to the overall decline of sales. On the contrary, the sales of utility vehicles register growth almost by a third from last year to 92,739 units. The entry of new players like Kia Motors India and MG Motor India has encouraged the purchase decisions of consumers.
As most-loved Indian festival Diwali fell in November last year, the sales were high during the month. The lack of enthusiasm in overall consumption demand of the economy affected adversely the sales of vehicles this year.
The wholesales of vehicles have also registered the significant declined across the categories in November. The sales dropped significantly by 12% year-on-year to 17,92,415 units on the back of slowdown. The lack of credit availability from the financial institutions in the market could be linked with the shrinking wholesales of the vehicles.
The downswing in manufacturing and infrastructure activity along with increased freight of carrying trucks led to a decline in wholesales of medium and heavy commercial vehicles to 17,039 units.