look news india
Mumbai: Auto sales may be affected in the current month due to uncertainty regarding Lok Sabha elections. Federation of Automobile Dealers Association (FADA) said vehicle sales may be affected in May despite increasing consumer interest in new launches. Retail sales of vehicles in April have seen a year-on-year increase of 27 percent.
A statement issued by FADA said that the uncertainty surrounding the elections has weakened market sentiment and consumers are holding back their decisions on purchasing vehicles.
With turnout lower than last year in the first three phases of the Lok Sabha elections, questions are now being raised whether the BJP and its allies will win with a huge majority as expected.
What will be the monetary policy of the new government and what effect it will have on people's income is a matter of concern.
Retail sales of vehicles witnessed a growth of 27 per cent in April due to consumer attraction towards new launches. FADA President Manish Raj Singhania said vehicle sales increased in April as a result of stable fuel prices, expectations of a wedding season and favorable monsoon.
The statement said the auto industry is cautious about the near-term outlook.
The auto industry accounts for seven percent of India's economy, due to which policy makers always keep an eye on auto sales figures.
Retail sales of cars increased by 16 percent in April while sales of two-wheelers increased by 33 percent. The sales growth of two-wheelers in April has been the highest in the current year. It is believed that the sales figures are high in April due to Gudi Padwa and Navratri festivals.