Auto sales skid in February on poor demand, high inventory

Dampened Confidence

- SWARAJ BAGGONKAR

NEW VEHICLE REGISTRATIONS recorded the steepest fall in two months in February led by weakness seen in passenger vehicles (PVs) and in the two-wheeler segment. Poor consumer sentiments, tightened lending norms and reduced discounts impacted retail numbers.

Registration data sourced from the government-controlled Vahan portal by the Federation of Automobile Dealers Association (FADA) showed a 7% year-on-year (y-o-y) drop in February volumes to 1.89 million units.

PVs, comprising cars and sports utility vehicles (SUVs), marked a drop of 10% y-o-y in new registrations to 303,398 units in February. Dealers noted weak market sentiment which, especially, continues in the entry-level category and delayed conversions.