Auto dealers see no quick recovery in slowdown, pin hope on stable govt

Liquidity crisis, weak sales have increased inventory for dealers, says date released by dealers association.

The retail sales of vehicles across segments declined significantly by 8 per cent year-on-year (YoY) to 1,638,470 units in April, as political uncertainty before the general election results and continued lack of financing options due to the liquidity crunch in non-banking financial companies (NBFCs) kept potential customers away from showrooms, the data released by the Federation of Automobile Dealers Associations (FADA) showed.

Showroom sales of passenger vehicles--a bellwether of urban demand--declined 2 per cent to 242,457 units, when compared to 247,278 units sold in the corresponding month in 2018-19.

The modest decline in passenger vehicles sales come on the back