There was a 7% y-o-y reduction in passenger vehicle retail sales to 178,513 units, as observed in August’s domestic scenario. On Tuesday, data shared by the Federation of Automobile Dealers Associations described the halts and disruptions caused by COVID-19 in the process.

Compared with July’s total of 157,313 sold units, August witnessed improvements by rising necessities in rural and semi-urban markets, followed by usage of personal transport by people to prevent risks of infection. This was observed even in segments of two-wheelers and tractors.

May lifted the lockdown, leading to growth in retail sales. The demand looks to increase for the upcoming Navratri and Diwali festivals as manufactures attempt to ramp up production correspondingly.

Fada president Vinkesh Gulati suggests that alongside the rural market facilitating revival to date, the demand was simultaneously seen in urban centres during the month.

“Passenger vehicles after five months saw decline reduced to single digits as customers who were sitting on the fence, finally concluded their purchase during ongoing festivals of Janmashtami and Ganesh Chaturthi. Entry-level passenger vehicles were in high demand as personal mobility is being preferred with the current pandemic showing no signs of reduction,” added Gulati.