Scorching summer heat has delivered a blow to car sales in India with footfall at showrooms coming down by 15 per cent, as per Federation of Automobil
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Car sales registered a seven per cent decline in the Indian automotive market this past June, compared to sales figures from June of 2023, as per industry body Federation of Automobile Dealers Association or FADA. Overall sales of passenger vehicles (PVs) in the month of June was at 2,81,566 units compared to a little over three lakh units in the same month of last year.
Car sales have been on a high since Covid-related restrictions began to be eased. Demand even – and often – outstripped pace of production, leading to record sales for most PV manufactures in the country in 2023. But the times of giddy highs may well be over despite production capabilities being enhanced and the issue of semiconductor shortage fading to memory. But June sales figure was particularly impacted by a severe heatwave in many parts of India, especially in the northern states.
India car sales hit a heat blanket
Temperatures soared to record levels in many states in northern India in the month of June. In Delhi, most days of the month saw mercury reach highs close to 50-degree Celsius. As per FADA, this has had a direct impact on car sales because of lower footfall at showrooms. “Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to extreme heat resulting in 15 per cent less walk-ins and delayed monsoons,” said FADA President Manish Raj Singhania. He further added that dealers have reported significantly fewer inquiries while many customers chose to delay purchase decision to the festive period.
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This has resulted in inventory levels for PVs to reach as high as up to 67 days. “FADA strongly urges passenger vehicle OEMs to implement prudent inventory control and engage proactively with the market,” noted Singhania.
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Festive lights sparkling at end of tunnel?
There is a certain degree of concern in the Indian car market even though the high base of 2023 was always going to be difficult to replicate. Most majpr car manufacturers have started announcing various discounts to inject excitement into the market.
Maruti Suzuki has announced its Dream Series offer on S-Presso, Celerio and Alto K10 will continue till end of July. Discounts are also available on Jimny, Grand Vitara, Baleno, Fronx and many other models.
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Honda cars like Amaze, City and Elevate are also coming in with various offers and schemes.
Tata Altroz, Tigor and Harrier are available with discounts, either from the company or at dealership levels. Other manufacturers are expected to follow suit.
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But the concern is that while the festive period which usually starts from August in India usually means brisk business, there aren’t many new products lined up this time around which could put off potential buyers. Nonetheless, the arrival of monsoon across most parts of the country may help pick up pace.
First Published Date: 05 Jul 2024, 12:38 PM IST
