Passenger vehicle sales dropped for a fourth month this fiscal year in November, causing the industry association to warn that the numbers for 2018-19 could fall short of its estimate.
Automakers dispatched 26,6000 units of cars, utility vehicles and vans in the past month, a 3.43% fall from a year earlier. The industry has been under pressure for several months now as high interest rates and fuel prices, as well as a rise in upfront insurance cost, kept many potential buyers away.
Given the lacklustre performance, it may be difficult for the passenger vehicle segment to achieve the 7-8% growth forecast for the fiscal year.
Passenger vehicle sales fell 2.71%, 2.46% and 5.61% in the three months through September, before posting a marginal 1.55% rise in October as automakers dispatched vehicles to dealerships ahead of festivals. Indian automakers announce only wholesale monthly numbers.
Given the challenges stemming from rise in interest rates, fuel prices and insurance costs, the second half of the fiscal year looked difficult.
In commercial vehicle segment, liquidity tightening post the IL&FS crisis has hurt sales of medium and heavy trucks, which fell 11% to 25,363 units in November. However, sales of light commercial vehicles rose 17.5% to 47,449 units, pushing up the overall volume in the commercial vehicle segment by 5.71%.
Two-wheeler sales increased 7.15% to 16,45,791 units. While sales of scooters went up by 3% to 52,1542 units, those of motorcycles increased 9.36% to 10,49,659 units.
Overall sales, across categories, grew 5% to 20,38,015 units.