Retail car sales jumped 9 per cent in August as improved supplies and expanded consumer schemes pushed up demand, dealers' body Fada said on Tuesday.
But concerns remain over inflation tamping demand down even as inventory at the end of dealers is more than desired levels.
Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand, Federation of Automobile Dealers Associations (Fada) president Manish Raj Singhania said.
"Such developments would be particularly inopportune as they would coincide with the peak of India's festive season, notably Navratri and Deepawali, traditionally periods of heightened consumer activity," Singhania said.
The average passenger vehicle (PV) inventory at the end of August ranged from 58-63 days, up from 50-55 days in July and 30-35 days in August last year, FADA said.
“It is alarming that inventory levels have exceeded a 60-day supply for the first time, even before the onset of the Navratri-Diwali festivities — a trend that necessitates vigilant monitoring by PV OEMs," Fada said.
The total retail sales across segments rose to 18,18,647 units last month, up 9 per cent, from 16,74,162 units in August 2022.
Passenger vehicle registrations increased 7 per cent to 3,15,153 units last month from 2,95,842 units in August 2022.
"In the passenger vehicle segment, improved vehicle supply, bolstered by expanded customer schemes, has maintained positive market dynamics," Singhania said.
Similarly, two-wheeler sales saw a jump of 6 per cent to 12.5 lakh units compared with 11.80 lakh units in the same month last year.
"Despite positive growth, consumer sentiment remained ambivalent, impacting conversion rates and intensifying competition among key players," Singhania noted.
Hero-Ather
Hero MotoCorp will invest an additional Rs 550 crore in Ather Energy.
The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature, Hero MotoCorp said.
