New Delhi: According to data from the Federation of Automobile Dealers Association (FADA), the apex body of the automobile retail industry in the country, vehicle sales in the country declined by 36 per cent in July compared to the previous year. During this period, two-wheeler sales fell by 37.47 per cent, three-wheelers by 74.33 per cent, commercial vehicle sales by 72.18 per cent and personal weeklies by 25.19 per cent. However, the figures for July have been better than in June this year.
FADA says that banks and NBFCs are not in a mood to take risks despite adequate liquidity, affecting demand for commercial, three-wheeler and two-wheelers. It says that the government should give incentives to every industry to increase demand and implement scrap policy immediately. Fada President Ashish Harshraj Kale said that the country is still in the process of unlocking. The July figures have been better than June, but the recovery of the auto sector is far away from last year.
He said that there is good recovery in the rural market due to good monsoon. The monsoon is showing a positive trend in the sale of tractors, small commercial vehicles and motorcycles. Banks and NBFCs have no shortage of cash but are reluctant to give loans. This is affecting demand for commercial, three-wheeler and two-wheelers. Vehicle funding percentage has fallen by 10 to 15 per cent in many segments, making the purchase of vehicles inaccessible to many consumers.
