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PV sales dip in Dec, see fifth monthly decline since July

Press Trust of India  |  New Delhi 

Domestic passenger vehicle sales declined in December 2018 for the fifth time in the past six months, as manufacturers reduced wholesale dispatches to dealers in order to cut inventory pile-up after a tepid festive season.

According to the latest data released by the (Siam) on Monday, passenger vehicle (PV) sales in December stood at 2,38,692 units, marginally down from 2,39,723 units in December 2017.

Similarly, domestic declined 2.01 per cent to 1,55,159 units, compared with 1,58,338 in December 2017.

PV sales declined by 3.43 per cent in November 2018. It rose 1.55 per cent in October, snapping three months of consecutive decline. In July, August and September, PV sales fell by 2.71 per cent, 2.46 per cent and 5.61 per cent, respectively.

"As festive season selling did not happen this year (2018) around, stocks at level went up considerably. It required a correction so automakers made adjustments in this regard during December," told reporters here.

With reduced dispatches and during the month, the situation is now normal with inventory levels reduced to 30-35 days from the earlier levels of 45-50 days, he added.

Issues like high fuel prices, lack of and credit options led to decline in sales in the third quarter, Wadhera said.

"With fuel prices coming down, buyer sentiments have now started to turn positive and we expect the fourth quarter to be better in terms of sales," Wadhera said, adding that 2019 is going to be a "year of growth".

"As we move towards BS-VI emission norms from 2020, we expect to see pre-buying happening this year. It happens all over the world," he noted.

Wadhera said two-wheeler prices are set to go up after transition to BS VI norms.

In 2018, PV sales rose 5.08 per cent to 33,94,756 units, from 32,30,614 units in 2017.

During December, posted a 1.5 per cent increase in PV sales at 1,19,804 units. Rival also reported an increase of 4.82 per cent at 42,093 units.

Homegrown utility vehicle reported a 2.83 per cent decline in its PV sales at 15,091 units in December. saw sales dip 4.31 per cent to 15,395 units during the month.

said total two-wheeler sales in December declined 2.23 per cent to 12,59,026 units, compared with 12,87,766 units in the year-ago month.

Motorcycle sales last month, however, rose marginally to 7,93,061 units, against 7,88,334 units a year ago. Scooter sales declined 6.08 per cent to 4,06,137 units, compared with 4,32,427 units in December 2017.

During the month, saw its bike sales grow marginally to 4,00,710 units. Rival also witnessed a 39.24 per cent jump to 1,57,252 units, while Honda Motorcycle and (HMSI) saw motorcycle sales dip 25.42 per cent to 92,784 units.

In scooter segment, HMSI's scooter sales were at 2,15,212 units in December, down 9.88 per cent as compared to the previous year.

Chennai-based posted an 8.51 per cent jump in its scooter sales at 86,963 units, while witnessed a decline of 37.11 per cent at 35,881 units in December 2018.

Sales of commercial vehicles were down 7.8 per cent to 75,984 units in December, said. Vehicle sales across categories registered a decline of 2.97 per cent to 16,17,356 units from 16,66,878 units in December 2017, it added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 14 2019. 16:25 IST
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