Showroom sales of passenger vehicles – an indicator of urban demand scenario – has decline by 2% to 242457 units when compared to 247278 units sold in the corresponding month in FY 19. The modest decline in passenger vehicles sales come on the back of double digit decline in wholesale dispatches reported by the companies in April. Essentially, this means retail sales of automobiles, especially in the passenger vehicle segment, did improve sequentially, as vehicles manufacturers have reduced production of vehicles. The new truck axle norms which allow trucks to carry more freight also had an adverse impact on retail sales. “The near term outlook continues to be negative with the absence of any immediate positive triggers which could affect retail sales.

Source: Mint May 08, 2019 10:18 UTC