Car Sales decline Marginally in May, Heatwave And Elections were Main Reasons

The rapid growth of the automobile market for the past several months has slowed down last month. In May, sales of the passenger vehicle segment have declined slightly on a year-on-year basis. However, the total vehicle sales have registered a growth of 2.61 percent last month due to the good performance of the two-wheeler and three-wheeler segments.

Manish Raj Singhania, President, Federation of Automobile Dealers Association (FADA) said, “Lack of new models, OEM’s lack of marketing efforts and tough competition have affected the sales. Apart from this, customers postponing purchases and fewer inquiries have also increased the challenges in the market.” FADA said that the intense heat in most parts of North India has also affected the footfall in car showrooms. The automobile market is expected to pick up after the Lok Sabha elections are over.

With the forecast of better than normal monsoon, there is a lot of demand in rural areas Demand There may be improvement in the sales. Maruti Suzuki, one of the big car makers, saw its sales decline by 2% last month. The company hopes that the upcoming monsoon season will be good and its sales will pick up pace. Maruti Suzuki has pending orders for more than 2.25 lakh units.

Recently, the company’s Senior Executive Officer (Marketing and Sales), Partho Banerjee, said that out of these pending orders, more than 40,000 are for the recently launched new Swift. Apart from this, about 75,000 orders are for CNG variants. company CNG cars contribute to more than 32 percent of the company’s sales. It is getting a lot of demand for the CNG variants of Brezza and Ertiga. The waiting period for these is four to six weeks. The number of the company’s Arena sales outlets has reached 3,000. It has Arena outlets in more than 2,500 cities and towns. The company opened the first Arena outlet in 2017. It sells WagonR, Swift, Brezza, Dzire, Ertiga, Eeco, Alto K10, Celerio and S-Presso through the Arena network. The company launched a new version of the hatchback Swift. Its starting price is Rs 6.49 lakh (ex-showroom). It is available in nine exterior color options, three dual-tone and two new Lusture Blue and Novel Orange colors.

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