Auto Sales In India Grew 11% In 2023: FADA

Apex dealer body Federation of Automobile Dealers Association (FADA) reported that the Indian auto industry posted a sales growth of 11.05 per cent year-on-year in calendar year (CY) 2023. Cumulative sales stood at 2,38,67,990 units – up from 2,14,92,324 units reported in CY2022. FADA data revealed that all segments posted a year-on-year growth over CY2022 with three-wheelers seeing the strongest growth at 58.50 per cent followed by passenger vehicles and two-wheelers.

Passenger vehicle sales for the year stood at 38,60,268 units – up 10.61 per cent over calendar year 2022. Two-wheeler sales meanwhile, were up 9.45 per cent from 1,55,88,352 units in CY2022 to 1,70,61,112 units last year. Commercial vehicle sales were up 8.28 per cent to 9,94,330 units in CY2023 while tractor sales were up 7.09 per cent with 8,71,627 units sold.

Sales for December 2023 were in the positive as well with only light commercial vehicles posting a marginal decline. Two-wheeler sales grew a notable 27.56 per cent year-on-year rising from 11,36,465 units in December 2022 to 14,49,693 units in the same month last year.

Speaking about the segment’s performance, FADA President, Manish Raj Singhania said, “In the 2W category, key drivers included an abundance of marriage dates and the distribution of harvest payments to farmers, which enhanced purchasing power. Additionally, the availability of a wide range of models and variants, coupled with favourable weather conditions and a generally positive market sentiment, contributed to this robust growth. Enhanced product acceptance, particularly among the youth, and lucrative financial options, coupled with the anticipation of price increases in January 2024, spurred purchases.”

Passenger Vehicle sales meanwhile grew a minor 2.65 per cent to 2,93,005 units. Speaking on the segment, Singhania said that SUVs particularly saw strong demand with some models having extended waiting periods. Singhania attributed this to aggressive year-end promotions from brands as well as new models hitting the market.

The tractor and commercial vehicle segments, meanwhile, witnessed relatively flatter sales with the former posting a 0.22 per cent gain and the latter a 1.31 per cent growth. Interestingly all segments save tractors posted a month-on-month decline as compared to November 2023.

Looking towards the future, FADA said it held a positive outlook for both the near term and long term. The dealer body said that it expected two-wheeler sales to pick up in the second half of January in the near term with demand for CVs to continue to rise owing to demand from infrastructure projects and more. For PVs, FADA said that the initial focus would be to clear existing orders and introduce 2024 models though it expected sales to pick up as well.