Passenger vehicle sales in July declined 25.19 per cent to 1,57,373 units over the corresponding period last year as the impact of the pandemic on vehicle offtakes continues, the Federation of Automobile Dealers Association (Fada) said on Monday.

Pitching for industry-specific policies to boost demand for the speedy revival of the auto sector, Fada president Ashish Harsharaj Kale said as the country continues to open up, July saw better registrations compared with June, though on a year-on-year basis recovery in the auto sector is yet to be anywhere near normal.

Two-wheeler sales declined 37.47 per cent to 8,74,638 units last month from 13,98,702 units in July 2019. Commercial vehicle sales declined 72.18 per cent to 19,293 units compared with 69,338 units in July 2019.

Total sales across categories declined 36.27 per cent to 11,42,633 units last month against 17,92,879 units in the year-ago month.

Current market conditions are still not indicative of the actual demand situation on an all-India level and retail sales continue to decline in huge double digits despite the low base of last year.

The rural market, however, continues to show strong sales growth for tractors, small commercial vehicles and motorcycles as monsoon continues its good spell, Kale said.

Banks and NBFCs though flush with high liquidity are still cautious about funding, affecting demand revival, especially in the commercial vehicle, three-wheeler and two wheeler segments, he added.

Maruti Suzuki India continued to lead domestic passenger vehicle retails in July, followed by Hyundai, Tata Motors and M&M.