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Car sales June 2019 state wise – UP No 1, Maharashtra 2nd, Karnataka 3rd

Maruti Ertiga sales

Monthly vehicle registration data released by Federation of Automobile Dealers Associations (FADA) shows that downtrend in passenger vehicle (PV) sales continues in June 2019. According to FADA President Mr Ashish Harsharaj Kale, liquidity issues and delayed monsoon continue to plague the auto sector.

The only consolation for PVs is that de-growth in this segment is the least for Q1, FY19-20. As compared to Q1′ 18-19 when 7,36,290 PVs were sold, Q1′ 19-20 figures stand at 7,28,785 units, which is de-growth of just 1%. De-growth in other auto segments is much higher than this.

Another positive development for PVs from the dealer perspective is that high inventory has been brought under manageable levels. FADA has thanked PV manufacturers for regulating production and reducing wholesale billing to dealers, which have helped tackle the issue of high inventory.

State wise car sales June 2019

In the coming weeks, inventory in PVs will reduce further to around 4 weeks in many regions of the country. From that point onwards, it would be easier to achieve the FADA recommended three weeks (21 days) of inventory for PVs.

Looking at state-wise PV sales data, it’s clear that most states have registered negative growth. In terms of YoY growth, there are only a few states that have recorded positive growth such as Rajasthan (8.89%), Chhattisgarh (14.64%), Jharkhand (3.79%), Himachal Pradesh (5.38%), Meghalaya (4.19%), Arunachal Pradesh (48.39%), Manipur (31.76%), Mizoram (85.06%), Nagaland (19.46%), and Sikkim (19.22%).

All other states have registered a decline. In June 2019, Uttar Pradesh registered car sales of 30,358 units, Maharashtra car sales were at 24,806 units, Karnataka sold 18,288 cars, Rajasthan 17,648 cars, Gujarat 16,606 cars, Tamil Nadu 15,616 cars, Haryana 14,681 cars, Kerala 14,628 cars, Delhi 11,905 cars, Punjab 9,341 cars, West Bengal 7,392 cars, Jammu & Kashmir 6,011 cars, Chhatisgarh 5,779 cars, Assam 5,262 cars, Bihar 5,150 cars, Jharkhand 4,214 cars, Odisha 4,101 cars and so on.

According to FADA, liquidity issues at the dealer level and retail front will continue to hamper PV sales in the near term. However, long-term outlook looks encouraging with recent government decisions such as recapitalization of nationalized banks and provision of 1 lakh crore funds for stable NBFCs.

FADA also pointed out that vehicle penetration in the country is less than 30 cars per thousand, which indicates significant room for future growth. Other Asian countries such as Thailand, Indonesia, Malaysia, Philippines and Sri Lanka have much higher vehicle penetration and their sales are still going strong.

FADA further said that economic fundamentals for the country remain positive and the trouble for the auto sector is a temporary phenomenon. With rising income, growing aspirations, new product launches and addition/upgrade of road networks, PV segment is expected to bounce back and witness increased growth in the coming years.


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