Automobile retail sales hit slow lane in Feb

New Delhi: Automobile retail sales across categories, including passenger vehicles (PV) and two-wheelers, witnessed a drop of 7 per cent in February amid declining demand, dealers’ body FADA said on Thursday.

Overall retail sales in the domestic market stood at 18,99,196 units last month, registering a dip of 7 per cent compared to 20,46,328 units in the year-ago period. “February witnessed a broad-based downturn across all categories,” Federation of Automobile Dealers Associations (FADA) President C S Vigneshwar said in a statement.

During the month, dealers began expressing concerns about inventory being pushed to them without their consent, he added. “While such initiatives may serve broader business objectives, it is critical to align wholesale allocations with genuine demand to protect dealer viability and ensure healthy inventory management,” Vigneshwar stated. Passenger vehicle retail sales declined 10 per cent year-on-year to 3,03,398 units in February.

“Dealers noted weak market sentiment which specially continues in the entry level category, delayed conversions, challenging targets and stressed that OEMs should avoid overburdening dealers with excessive inventory -- a practice that risks unmanageable stock levels given the cyclical nature of the industry,” Vigneshwar said. Inventory levels in this segment remained in the range of 50-52 days, he noted.