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Passenger vehicles sales appear to have shown a significant rebound in January 2019 when compared with December 2018, aided by a revival in customer sentiments and new model launches, according to auto dealers’ body.
Although all the sectors on a monthly basis have shown signs of positive growth, 2W growth rates are not at a healthy high and are seen positive due to a huge de-growth in December. CV growth is flat and has substantially dropped from the high growth rate it had maintained through the year to date.
During January, passenger vehicle sales have grown by 34 per cent at 2,71,395 units when compared with 2,02,585 units in December 2018. The sale of two-wheelers grew by four per cent at 11,89,679 units as against 11,41,209 units. Commercial vehicle sales was stagnant at about 53,700 units. Three-wheelers recorded a growth of 12 per cent at 50,344 units (45,008 units), according to the data compiled by the Federation of Automobile Dealers Associations (FADA).
Compared to previous months, January saw overall positivity backed by good retail offerings which has helped PV car sales. New launches in the month also added to the overall excitement and captured the attention of the buyer.
“As predicted, healthy inquiry levels seen in December showed signs of conversions with the year end offers continuing in January, especially by passenger vehicle OEMs which has helped the customer in making the final purchase,” said Ashish Harsharaj Kale, President, FADA.
Under pressure
Despite good retail sales, the current outlook for PV still remains cautiously optimistic, while retails of two-wheelers and commercial vehicles are still under pressure.
On the inventory side, two-wheeler dealers’ inventory is a cause of serious concern. But, inventory levels of PV and CV, though not optimal, stand at reasonable levels. Two-wheeler dealers’ inventory ranges from 50 to 60 days. Inventories for PV and CV range from 30 to 35 days.
“Beginning next month, we will release category-wise comparison figures from both monthly and yearly perspective,” said Kale.
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