Passenger vehicle sales fall by 11% in July

Passenger vehicle sales in India fell by 11% YoY in July 2019 to reach 243,183 units according to the automobile dealers body FADA (Federation of Automobile Dealers Associations). This is the 9th successive month of decline. Two-wheeler sales also witnessed a drop by 5% to reach 13,32,384 units. Performance of commercial vehicles was even worse, with a drop by 14% YoY to 23,118 units. Only three-wheelers recorded an increase by 3% to 55,850 units.

The poor performance has been attributed to the slowing economy, rising ownership costs and possibly the floods in some states acting as a deterrent. RBI has cut India’s growth forecast for the current fiscal to 6.9% from its June projection of 7%.