The Federation of Automobile Dealers’ Association (FADA) urged passenger vehicle OEMs to control inventory in the wake of a notable decline in retail sales. Passenger vehicle sales fell 6.77 percent YoY and 7.18 percent MoM. Inventory levels have reached an all-time high, ranging from 62 to 67 days. India’s automobile retail industry experienced modest YoY growth of just 0.73 percent.
While the two-wheeler (2W) and three-wheeler (3W) segments registered positive YoY growths of 4.66 percent and 5.1 percent, respectively, other categories such as passenger vehicles (PV), tractors (INVENTORY ANGLE), and commercial vehicles (CV) saw declines of 6.7 percent, 28.3 percent, and 4.7 percent YoY, respectively.
The two-wheeler category faced significant challenges, with a MoM sales decline of 10.36 percent despite a 4.66 percent YoY increase. Factors such as extreme heat, which resulted in 13 percent fewer walk-ins, stalled monsoons, and election-related market slowdowns particularly affected rural sales, which fell from 59.8 percent in May to 58.6 percent in June.
CNG bike
Bajaj Auto launched the world’s first CNG motorcycle, christened Freedom, on Friday. The company said the bike causes about 50 percent cost savings by significantly reducing fuel expenses, as compared to similar petrol motorcycles. The CNG tank provides a range of 200+ km on 2 kg of CNG fuel. Additionally, it has a 2-liter petrol tank that performs as a range extender, offering over 130 km of range in case the CNG tank empties.