Car Sales To Dealers Hit 18-month Low In June, Says SIAM
City and town dwellers have tightened their purses for a better part of this year, with salary hikes lagging the growth seen in previous years
PUNE: Car sales to dealers by Indian automakers slid to an 18-month low in June amid weak demand in urban areas, data from the Society of Indian Automobile Manufacturers or SIAM showed on Tuesday.
City and town dwellers have tightened their purses for a better part of this year, with salary hikes lagging the growth seen in previous years.
Siam said car makers delivered 3,12,849 units to dealers last month, down 7.4 per cent from 337,757 units a year before.
Similarly, the June quarter sales to dealers also dropped 1.4 per cent to a two-year low. On a quarter-on-quarter basis, sales were down 13 per cent, compared with a 9.6 per cent drop in the same period last year.
Sales of cars to dealers usually decline between the March and June quarters as manufacturers generally prop up sales with discounts in the first three months of the year to clear excess inventory.
"Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges," said Shailesh Chandra, president at SIAM.
He said automakers are counting on the festive demand and lower bank loan rates to help sales recover.
Car sales hit record highs for three consecutive financial years in the world's third-largest car market, before losing steam in 2024-25 amid a fall in disposable income.
Sales grew by a mere 2 per cent in the financial year to March 2025 after rising 8.7 per cent in fiscal 2024 and 27 per cent in fiscal 2023.
Industry insiders expect overall car sales in India to grow just 1-2 per cent in the year to March 2026, citing flailing demand.
Last week, a dealers' body said challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes.