A 4 percent decline has been recorded in the total vehicle sales in the country in the month of April. The Federation of Automobile Dealers Association (FADA) has informed that the sales of two-wheelers has decreased by 7 percent and the sales of passenger vehicles by 1 percent. Along with this, the organization has also demanded the government to reduce the Goods and Services Tax (GST) on two-wheelers.
Two-wheelers account for 75 percent of vehicle sales in the country. In the month of April, the sales of two-wheelers have decreased by 8 percent. Two-wheeler sales are still 19 percent lower compared to April 2019 before the Corona crisis. Even in the rural economy, progress is not seen as it should be. Currently there is 28 percent GST on two-wheelers. It should be reduced to 18 percent. That means there will be an increase in sales, said FADA.
In this regard, FADA President Manish Raj Singhania said that there was a record increase in the sales of passenger vehicles in the previous financial year. However, sales slowed in April and were down 1 percent from last year. The increase in vehicle prices due to the BS-6 standard has also affected sales. For the first time in eight months, passenger vehicle sales have declined. The number of unsold vehicles is increasing, which is a matter of concern.
There is very little demand for low cost passenger vehicles. It seems that the segment that is shifting from two-wheelers to four-wheelers is not ready to buy a motor for it. Unseasonal rains have caused heavy crop damage in many states. This has also reduced the sales of two-wheelers and passenger vehicles. At the same time, the sales of three-wheelers have increased by 57 percent in April. This growth is due to e-rickshaws. Singhania said sales of tractors and commercial vehicles have increased by 1 and 2 percent respectively.
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