Automobile dealers say worst behind industry as March passenger vehicle sales rise 5%

Image result for Automobile dealers say worst behind industry as March passenger vehicle sales rise 5%India’s retail passenger vehicles sales for March rose 5 percent from a month ago, while two-wheeler sales rose 10 percent, according to data from the car dealers’ association.

The data, based on vehicle registrations, was released by the Federation of Automobile Dealers Association (FADA).

Dealers are holding 40-45 days worth of inventory for passenger vehicles and 45-50 days worth of inventory for two-wheelers, according to a survey conducted by FADA.

Passenger vehicle sales from March 2018 to March 2019, fell 10 percent to 2.42 lakh units from a year earlier, while two-wheeler sales declined 7 percent, the data showed.

“We at FADA believe that the worst for auto industry is now behind us and expect plateauing of the declining demand and expect sales to stabilise in their current normal range for the next 4-6 weeks till India’s biggest democratic festival, The Elections, conclude and we head towards the onset of the monsoon,” Ashish Harsharaj Kale, president of FADA, said in a statement.

According to FADA, a stable government at the centre, an above-average or average monsoon and a continued easing of monetary policy by the RBI, are expected to aid the auto sector going ahead.

[“source=cnbctv18”]