Passenger vehicles sales fall 1.87% in Jan

Domestic passenger vehicle (PV) sales declined for the third month in a row in January, dropping 1.87 per cent, as manufacturers continued to reduce inventory at dealers following a tepid festive season sales, according to SIAM.

As per data released by the Society of Indian Automobile Manufacturers (SIAM) Friday, PV sales in January stood at 2,80,125 units last month as against 2,85,467 units in the same month last year.

Domestic car sales were also down for the third consecutive month, declining 2.65 per cent to 1,79,389 units as compared to 1,84,264 units in January 2018.

"Stock correction by manufacturers continued in January to cut inventory that were piled up during the festive period, which saw sluggish sales," SIAM Deputy Director General Sugato Sen said.

He, however, said retail sale was better than wholesale in January, and the industry expects demand to grow in the remaining two months of the fiscal.

During the month, market leader Maruti Suzuki India (MSI) posted a marginal growth of 0.18 per cent in its PV sales at 1,39,440 units. Rival Hyundai Motor India Ltd (HMIL) also posted 0.65 growth at 45,803 units.

Similarly, home-grown utility vehicles major Mahindra & Mahindra also saw 0.88 per cent rise in its PV sales at 23,864 units last month.

In passenger cars segment, MSI's sales stood at 1,01,865 units, down 4.12 per cent. HMIL's car sales was also down 1.58 per cent at 35,439 units last month. Honda Cars India, however, saw its car sales grow 51.67 per cent to 14,383 units.