July auto sales remain flat on tepid demand

Festive Hope

- SWARAJ BAGGONKAR

AFTER TWO CONSECUTIVE months of decline, the passenger vehicle segment is estimated to have closed July with a growth of just under 1% year-on-year in volumes even as retails continued to remain under pressure following weak consumer sentiments.

Seven of India's biggest car brands, which control 95% of the domestic market, sold 329,113 units to their dealers last month. Four of the top five manufacturers posted either a decline or no growth during the month. Last month dealers said heavy monsoon and tight liquidity weighed on booking conversions to actual sales despite incentive schemes. Inventory period, they said, remained elevated at around 53 days.