India Diwali festival vehicle sales drop 11% y/y on fuel price rise, tighter auto loans

26, Nov. 2018

NEW DELHI, NNA – New vehicle sales in India during the Diwali festival fell 11% from last year’s season due to rising fuel prices and tightened auto loans.

This prompted the auto industry to ask the government and central bank to help improve liquidity in lending by non-bank financial institutions.

The number of newly registered vehicles in the world’s fourth largest auto market during the annual festival fell to 2,049,391 units, hit by lower demand for passenger cars and motorcycles and despite higher sales of commercial vehicles, according to data from the Federation of Automobile Dealers Association.