Retail sales of passenger vehicles in India declined by a sharp 20 per cent year on year (YoY) to 157,972 units in September, according to the data by the Federation of Automobile Dealers Associations (FADA). Customers stayed away from showrooms during festivals like Onam and Ganesh Chaturthi in the southern and western states, expecting a cut in the goods and services tax on vehicles.
Sales of vehicles also remained in the red due to the Shraddh period during the month, considered inauspicious for big purchases in some parts of the country. Also, manufacturers did not push much inventory to the dealers expecting sales to remain tepid during the month. Wholesale dispatches of passenger vehicles slumped 23.7 per cent YoY to 223,317 units in September, the eleventh straight month of such decline.