BUSINESS

Two-wheelers worst hit as automobile sales drop in May

By TE Narasimhan
June 18, 2019 09:54 IST

The two-wheeler industry was hit by an increase in insurance rates, liquidity crunch, poor sentiment, rural distress and uncertainty over the BS-VI regulations, among other factors.

TE Narasimhan reports.

Image used for representation purpose only. Photograph: Saumya Khandelwal/Reuters

Automobile retail sales dropped by 7.5 per cent year-on-year (YoY) in May 2019 to 17,71,920 units from 19,14,795 units in May 2018, the Federation of Automobile Dealers Associations (FADA) said on Friday.

 

The worst hit was the two-wheeler industry due to an increase in insurance rates, liquidity crunch, poor sentiment, rural distress and uncertainty of the BS-VI regulations, among other factors.

Earlier last week week, the Society of Indian Automobile Manufacturers data, which is for wholesale figures, showed a fall of 8.62 per cent in total domestic sales in May 2019 compared to May 2018.

TE Narasimhan in Chennai
Source:

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