BHUBANESWAR: Multiple factors including uncertainty around election results, high insurance costs and the liquidity crunch in the economy pulled down passenger vehicle (PV) sales for the month of April to an eight-year low.
According to data released by Society of Indian Automobile Manufacturers on Monday, domestic PV sales declined 17.07 per cent to 2,47,541 units in April from 2,98,504 units in the same period a year ago.
Within the PVs, sale for passenger cars, utility vehicle and vans dropped 19.93 per cent, 6.67 per cent and 30.11 per cent, respectively.
Vishnu Mathur, director-general of Siam, said OEMs undertook inventory correction in view of the poor demand.
He added the sentiment in the market is not good and consumers seem to have delayed their discretionary purchases till the elections are over.
Not just PVs, two-wheeler and commercial vehicle sales also witnessed fall decline in April. Two-wheeler sales dropped 16.36 per cent to 16,38,388 units compared with 19,58,761 units a year ago.