NEW DELHI: Auto sales across all categories, including passenger vehicles and two-wheelers, fell 7 per cent in February due to sluggish demand, according to the Federation of Automobile Dealers Associations (FADA).
Total retail sales in the domestic market stood at 18,99,196 units last month, down from 20,46,328 units in the same period last year.
“February saw a broad-based decline across all segments,” FADA President C S Vigneshwar said in a statement, adding that dealers have raised concerns over rising inventory levels being pushed onto them without their consent.
“While such moves may align with larger business goals, it is crucial to ensure wholesale allocations reflect actual market demand to safeguard dealer sustainability and maintain balanced inventory levels,” he stated.
Passenger vehicles
Passenger vehicle sales saw a 10 per cent year-on-year drop to 3,03,398 units in February. Dealers reported weak market sentiment, especially in the entry-level segment, delayed purchase decisions, and challenging sales targets. They also urged automakers to refrain from burdening them with excessive inventory, as stock levels in this segment remained at 50-52 days.
Two-wheeler sales declined 6 per cent year-on-year to 13,53,280 units from 14,44,674 units in February last year. Dealers attributed this to inventory mismatches, pricing pressures, low consumer sentiment, fewer enquiries, and restricted financing availability. Additionally, slow-moving models and macroeconomic factors such as liquidity constraints and inflation added to the challenges.
Urban markets saw a sharper drop in demand compared to rural areas, Vigneshwar noted.
Commercial vehicle sales also fell 9 per cent year-on-year to 82,763 units in February, with dealers citing a difficult business environment and subdued demand in the segment.
