Retail Car Sales in India Drop 11%

Retail deliveries of passenger cars in India slid 11% to 243,200 units in July, the Federation of Automobile Dealers Assns. reports.

The group blames weak consumer sentiment, which also depressed sales in June.

FADA says sales also declined for two-wheelers (-5% to 1.33 million units) and commercial vehicles (-14% to 23,100). The group says the combined Indian market shrank 6% to 1.65 million units in July.

FADA says dealer inventories of unsold passenger cars have dropped close to the group’s target of a 21-day supply. But stocks of two-wheelers and commercial vehicles remain high. The group counsels its members to slash wholesale purchases, especially for two-wheelers.