With SIAM announcing the industry performance for the month of April in New Delhi today, and the entire sentiment around new vehicle sales being weak in the country amidst a time of a major political juncture, there is some positive respite still.
PV wholesales which pegged at 247,541 units in the month of April and declined a notable 17 percent over 298,504 units sold in the same month last year, saw actual retail sales touching 264,035 units in the month, albeit still registering de-growth of a marginal 1.28 percent (April 2018: 267,470).
However, major OEMs still needed to strategise a production cut, as inventory at the dealer level continues to overshoot demand in a hostile environment marred by poor market sentiments. Total PV production at 320,259 units declined 7.72 percent (April 2018: 347,068) in the month, with inventories reaching as high as 45-50 days. Dealer body FADA had earlier suggested that extra inventory at this time is an extra burden on auto dealers, especially when the working capital is tight for businesses in the country.
On the CV front, while the production saw a 9 percent cut with total CV manufacturing culminating at 82,329 units (April 2018: 90,997), registration of goods and passenger carriers saw a worrisome 11 percent decline to 78,175 units (April 2018: 87,911). It is expected that infrastructural development will again spring back once the next government is sworn into regime.
While three-wheelers saw a 12 percent slump in retail with total registrations pegged at 47,812 units (April 2018: 54,433), there was a relatively marginal cut of 4.72 percent in overall three-wheeler production with 92,714 units getting manufactured in the month (April 2018: 97,304).
In terms of two-wheelers, while the industry is hovering at a dismal 45-50 day inventory, April saw massive 11.55 percent production moderation with a total of 1,866,934 units being produced (April 2018: 2,110,651). The on-ground retail sales, however, saw a 7 percent reduction at 1,310,583 two-wheelers getting registered in the country as against the 1,409,667 vehicles registered in April last year.
Also read: Industry sales drive downhill in April
PV makers record double-digit sales decline in April