PV retails dip 5% in August; Fada raises alarm over rising inventory level ments.

Commercial vehicle registrations saw a 6 per cent year-on-year dip in August, while tractor retail sales also witnessed a drop of 11 per cent as compared to the year-ago period

Passenger vehicle retail sales in India witnessed a 5 per cent on-year decline in August on account of delayed customer purchases, poor consumer sentiment and persistent heavy rains, industry body FADA said on Thursday.

The overall passenger vehicle (PV) registrations last month stood at 309,053 units, as compared to 323,720 units in August 2023.

"Even with the arrival of the festive season, the market remains under significant strain... Inventory levels have reached alarming levels, with stock days now stretching to 70-75 days and inventory totalling 780,000 vehicles, valued at an alarming Rs 77,800 crore," Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement.

Two-wheeler sales, however, increased 6 per cent year-on-year to 1,338,237 units in August, as compared to 1,259,140 units in the same month last year, on the back of improved stock availability and the onset of the festive season, Singhania said.

Overall registrations last month saw an increase of 3 per cent year-on-year at 1,891,499 units, as against 1,838,501 units in August last year.