Decline in purchase of new vehicles amid inflation-recession, 8% decline in vehicle sales in July
Along with the high prices of petrol and diesel, people are avoiding buying new vehicles due to the concerns of inflation and recession and this is directly affecting the sales-registration of new vehicles. Overall sales of all types of vehicles declined 8 per cent to 14.36 lakh units in July due to lower purchases of two-wheelers, passenger vehicles and tractors.
According to the Federation of Automobile Dealers Association (FADA) data, overall sales of all types of vehicles fell by 7.84 per cent to 14,36,927 units in July, compared to 15,59,106 units sold in July 2021. Last month, tractor sales fell the most by 27.72 per cent to 59,573 units. Similarly, two-wheeler sales declined by 11 per cent to 10.09 lakh units and passenger vehicle sales declined by 4.6 per cent to 2.50 lakh units.
On the other hand, the total sales of various three-wheelers including rickshaws increased to 50,349 units in the same month of 2022 from 27,908 units in July 2021, thus registering a year-on-year growth of 80.41 per cent in sales. Similarly, sales of commercial vehicles increased by 27.32 per cent year-on-year to 66,459 units.
The association said that though new vehicle registrations declined in July, the launch of new models helped the growth, especially in the compact SUV segment. Also, due to increase in supply in the near future, the waiting list for delivery of vehicles is also likely to come down.
Commercial vehicle retail sales figures indicate good demand thanks to the government’s measures to boost infrastructure. Also, the infrastructure segment has seen an improvement in demand with the resumption of normal operations of educational institutions and offices.