Latest World News Update
  • Home
  • Business
  • National
  • Entertainment
  • Sports
  • Health
  • Science
  • Tech
  • World
  • Marathi
  • Hindi
  • Gujarati
  • videos
  • Press Release
    • Press Release
    • Press Release Distribution Packages
  • Live Streaming
Reading: August auto sales dip due to excess rainfall, FADA urge banks to tighten funding to dealers – World News Network
Share
Latest World News UpdateLatest World News Update
Font ResizerAa
Search
  • Home
    • Home 1
  • Categories
  • Bookmarks
  • More Foxiz
    • Sitemap
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Latest World News Update > Blog > Business > August auto sales dip due to excess rainfall, FADA urge banks to tighten funding to dealers – World News Network
Business

August auto sales dip due to excess rainfall, FADA urge banks to tighten funding to dealers – World News Network

worldnewsnetwork
Last updated: September 6, 2024 12:00 am
worldnewsnetwork
Share
SHARE

New Delhi [India], September 6 (ANI): Auto retail sales in India experienced a significant decline in August 2024, primarily due to excessive rainfall during this monsoon season, according to a report by the Federation of Automobile Dealers Associations (FADA).
The report highlighted a 7.01 per cent month-on-month (MoM) decline in overall retail auto sales, falling from 20.34 lakh units in July to 18.91 lakh units in August. However, despite this monthly setback, the sector witnessed a modest 2.88 per cent year-on-year (YoY) growth compared to August 2023.
“India saw 15.9 per cent excess rainfall, with a significant surplus in key regions, disrupting auto retail performance,” said the report.
The report added that the two-wheeler (2W) segment, despite showing a 6.28 per cent YoY growth, registered a 7.29 per cent MoM decline. It gave the market saturation, and weather disruptions were as the key factors behind the fall in two-wheeler sales.
In the passenger vehicle (PV) segment, the report stated that it faced a 4.53 per cent YoY and 3.46 per cent MoM decline, while the commercial vehicle (CV) segment recorded an 8.5 per cent MoM and 6.05 per cent YoY drop. FADA noted that weak industrial demand and weather-related challenges were major contributors to the significant drop in commercial vehicle sales.
Adding to the concerns, FADA’s report highlighted growing inventory challenges in the PV segment, with stock days ranging between 70-75 days, representing approximately 7.8 lakh vehicles valued at Rs 77,800 crore.
The report noted that these high inventory levels, combined with aggressive OEM (original equipment manufacturer) dispatches, have created cash flow pressures for dealers, impacting their profitability.
“Dealers under pressure due to aggressive OEM dispatches, with dealers facing cash flow challenges and reduced profitability” the report said.
To address this, FADA has urged banks and NBFCs to tighten funding for dealers with excessive inventory. Additionally, the report emphasized the need for dealers and OEMs to recalibrate their supply strategies to avoid a potential inventory crisis.
For the upcoming months the report paints an optimistic picture with festive season offering growth opportunities. However, it also noted that the auto retail market must navigate challenges posed by weather uncertainties and inventory management. Effective strategic planning, inventory control, and targeted marketing will be essential to capitalize on the festive demand while mitigating ongoing pressures. (ANI)

Contents
WORLD MEDIA NETWORKPRESS RELEASE DISTRIBUTIONPress releases distribution in 166 countriesPress releases in all languagesPress releases in Indian LanguagesIndia PackagesEurope PackagesAsia PackagesMiddle East & Africa PackagesSouth America PackagesUSA & Canada PackagesOceania PackagesCis Countries PackagesWorld Packages

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News

sponsored by

WORLD MEDIA NETWORK


PRESS RELEASE DISTRIBUTION

Press releases distribution in 166 countries

EUROPE UK, INDIA, MIDDLE EAST, AFRICA, FRANCE, NETHERLANDS, BELGIUM, ITALY, SPAIN, GERMANY, AUSTRIA, SWITZERLAND, SOUTHEAST ASIA, JAPAN, SOUTH KOREA, GREATER CHINA, VIETNAM, THAILAND, INDONESIA, MALAYSIA, SOUTH AMERICA, RUSSIA, CIS COUNTRIES, AUSTRALIA, NEW ZEALAND AND MORE

Press releases in all languages

ENGLISH, GERMAN, DUTCH, FRENCH, PORTUGUESE, ARABIC, JAPANESE, and KOREAN CHINESE, VIETNAMESE, INDONESIAN, THAI, MALAY, RUSSIAN. ITALIAN, SPANISH AND AFRICAN LANGUAGES

Press releases in Indian Languages

HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages

Email - support@worldmedianetwork.uk
Website - worldmedianetwork.uk

India Packages

Read More

Europe Packages

Read More

Asia Packages

Read More

Middle East & Africa Packages

Read More

South America Packages

Read More

USA & Canada Packages

Read More

Oceania Packages

Read More

Cis Countries Packages

Read More

World Packages

Read More
sponsored by
Subscribe to Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]
Share This Article
Twitter Email Copy Link Print
Previous Article “My dream has been to inspire and create 1,000 champions…”: Mary Kom – World News Network
Next Article Waqf Board Amendment Bill necessary, ASI tells Joint Parliamentary Committee in meet – World News Network
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Editor's Pick

Top Writers

Oponion

You Might Also Like

Nearly half of health insurance buyers in India cited rising medical expenses’ as reason for purchasing insurance: Report – World News Network

Nearly half (48 per cent) of health insurance buyers in India say they purchase policies mainly to protect themselves from…

4 Min Read

STL reports FY25 results; well-positioned to unlock growth – World News Network

Mumbai (Maharashtra) [India], May 17: STL (NSE: STLTECH), a leading optical and digital solutions company, today announced its financial results…

5 Min Read

Moody’s downgrades US government ratings due to rising federal debt and interest payments – World News Network

Moody's Ratings has downgraded the Government of United States of America's (US) long-term issuer and senior unsecured ratings to Aa1…

3 Min Read

AIPL DreamCity Ludhiana Introduces Pickleball Courts, Enhancing Community Sports Culture – World News Network

Ludhiana (Punjab) [India], May 17: AIPL DreamCity Ludhiana, the 500 acres expansive and modern township, has taken another step toward…

2 Min Read
Latest World News Update
Copyright © 2024 World News Network. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?