Car makers need to control their inventory following a sharp drop in retail sales in June, according to the Federation of Automobile Dealers’ Association (Fada).

Passenger vehicle sales fell 6.77 per cent on a yearly basis and 7.18 per month-on-month.

Inventory levels in the industry have reached an all-time high ranging from 62-67 days.

Overall retail sales grew 0.73 per cent in June: the two-wheeler segment grew 4.6 per cent and three-wheelers 5.1 per cent.

Tractor sales fell 28.3 per cent and commercial vehicles, 4.7 per cent.

The two-wheeler category faced significant challenges, with a month-on-month sales decline of 10.36 per cent.

Factors such as extreme heat, which resulted in 13 per cent less walk-ins, stalled monsoons and election-related market slowdowns particularly affected rural sales.

“Based on current market conditions, the overall rating for July auto retail performance is cautiously optimistic with a moderate outlook,” FADA said.

CNG bike

Bajaj Auto launched the world’s first CNG motorcycle christened Freedom on Friday.

The company said the bike causes about 50 per cent cost savings by significantly reducing fuel expenses compared with similar petrol motorcycles.

The CNG tank provides a range of 200+ km on 2 kg of CNG fuel.

Additionally, it has a 2-litre petrol tank which performs as a range extender, offering over 130 km of range in case the CNG tank empties.