Poor demand, costly fuel keep passenger vehicles sales in slow lane

Passenger vehicles reported a decline of 1.87% in sales in January; dispatch of cars declined 0.94% to 233,856 units

Car sales, a key indicator of the economy, continued to remain tepid in January due to poor demand. This was a result of high fuel price and insurance costs. Manufacturers, too, dispatched slowly to correct high inventory at dealerships.

Data from the Society of Indian Automobile Manufacturers (Siam), released on Friday, showed passenger vehicles (PVs), the most valuable segment of the domestic automobile industry by revenue, reported a decline of 1.87 per cent in sales in January. This is the sixth month since July 2018 that has had a decline.