Retail passenger vehicles sales fell 3 per cent in December from a year ago, while two-wheeler sales rose 11 per cent, according to data from the country's car dealers' association.
The data, based on vehicle registrations, was released by the Federation of Automobile Dealers Association (FADA).
"We hope that it will act as a barometer for the industry as well as for the policy makers and help understand the on-the-ground situation of auto sales," Ashish Harsharaj Kale, president of FADA, said in a statement.
Dealers are holding 35-40 days worth of inventory for passenger vehicles and 55-60 days worth of inventory for two-wheelers, according to a survey conducted by FADA.
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