Passenger vehicle sales
declined 1.24 per cent year-on-year (YoY) in December to 235,786 units, as manufacturers decided to cut production to match subdued retail demand and reduce inventory of BS-VI emission norms compliant vehicles. The fall was due to an 8.4 per cent decline in car sales to 142,126 units.
The industry said a change in the subdued consumer sentiment leading to an improvement in sales would happen only when overall economic mood improves.
According to the data released by Siam on Friday, factory dispatches of utility vehicles increased significantly by 30 per cent YoY to 85,252 units as a result of the new product launches by incumbents Hyundai Motor India, M&M, and Renault India and new entrants like MG Motor India and Kia Motors.