Indian retail sales as represented by new registrations across all automobile categories recorded 10 percent year-on-year growth in July this year, but a five percent decline from June, according data released by Federation of Automobile Dealers’ Association (FADA) on Monday, August 7.
“Automobile retail sales grew 10 percent in July year on year. However, the month-on-month decline continues to highlight short-term slowdowns,” FADA president Manish Raj Singhania said.
FADA said it believes that the auto industry is poised for an intriguing August with a mix of opportunities and challenges. Two-wheeler and passenger vehicle segments are expected to see an uptick due to the upcoming festival season, while the three-wheeler category is witnessing an interest towards electric variants.
However, the projection of below-average rainfall in August could lead to lower crop yields, reducing purchasing power, especially in rural regions.