Pune: Automobile retail sales in India rose 22 per cent in June to a record 2.6 million units, led by a 29 per cent jump in passenger vehicle sales at 4.10 lakh units, driven by alternative fuel vehicles, Federation of Automobile Dealers Association or FADA said on Monday.Electric, hybrids and compressed natural gas or CNG vehicles made up 40.35 per cent of passenger vehicle sales as buyers sought cheaper running costs after petrol and diesel fuel price hikes were raised several times in May.FADA said it remains unclear whether the shift to alternative-fuel vehicles is a lasting trend or a short-term response to higher fuel prices due to the West Asia war.Within passenger vehicle sales, CNG cars accounted for 24.3 per cent, hybrids jumped 8.3 per cent, and EVs accelerated to 7.8 per cent.In the two-wheeler sector, electric vehicles crossed a milestone as their share rose to 10.6 per cent of total sales, hitting the double-digit mark for the first time."We need to watch whether this is an emotional knee-jerk reaction from customers or whether this growth is here to stay,” said CS Vigneshwar, president at FADA.He noted that amid the rise in sales and current consumer shift to electric vehicles, it is difficult to say whether this trend is natural or circumstantial at present.Car market leader Maruti Suzuki said last month that bookings for its CNG cars jumped 40 per cent since the fuel price hikes.FADA said in the two-wheelers segment, improving rural cash flows once rainfall catches up and the accelerating shift towards EV and fuel-efficient models should provide support, though deficient-rainfall pockets and the July OEM price hikes may keep some buyers in wait-and-watch mode.
source: Deccan Chronicle
