The dealers body — Federation of Automobile Dealers Association (Fada) — on Wednesday released their sales data for April, which show retail sales of passenger vehicles declining 2 per cent 2.42 lakh vehicles in the month against 2.47 lakh vehicles a year ago. The dealers fear they are facing the backlash of the liquidity crisis among NBFCs and want the government to take measures to stem the fall in credit to dealers and customers. A substantial number of closures were because of accumulated losses and reduced access to working capital needs. The dealers want the government and the RBI to categorise auto retail as a separate category of credit. Fada said two-wheeler sales in April fell 9 per cent to 12.85 lakh units against 14 lakh units a year ago.

Source: The Telegraph May 08, 2019 19:41 UTC