Auto Sales July 2023: India Sees 10% Growth In Retail Volumes

The Federation of Automobile Dealers Associations (FADA) has released the monthly retail numbers for July 2023. Last month, the Indian auto industry’s collective retail sales stood at 17,70,181 units, a year-on-year growth of 10 per cent compared to 16,09,217 units sold in July 2022. However, compared to 18,63,868 vehicles sold in June, the industry reported a month-on-month decline of 5 per cent. These include passenger vehicles, two-wheelers, commercial vehicles, and tractors.

Passenger vehicle sales in July 2023 stood at 2,84,064 units, 4 per cent higher than 2,73,055 PVs sold during the same month in 2022. However, compared to 2,95,299 units sold in June 2023, the MoM decline stood at 4 per cent.

FADA President, Manish Raj Singhania said, “PV sales in July '23 were a mix of challenges and triumphs. The month saw a surge in orders and timely OEM supplies, especially with the introduction of new products. However, severe monsoons and flood-like situations especially in North India, impacted sales. SUVs continued to remain a popular choice.”

As for two-wheeler sales, in July 2023, the industry reported sales of 12,28,139 units. Compared to 11,35,566 units sold during the same month in 2022, the two-wheeler industry witnessed a growth of 8.15 per cent. However, MoM sales fell 6 per cent compared to 13,10,186 units sold in June 2023. Three-wheeler sales, on the other hand, saw a massive jump of 74 per cent, at 94,148 units. In comparison, 3W sales in July 2022 stood at 54,000 units. The segment also witnessed a MoM growth of 9 per cent compared to June 2023, when sales stood at 86,511 units.

Singhania also added, “Despite challenges like heavy monsoons and a tilt towards EVs due to high fuel prices, 2W showed resilience in July '23, with increased demand and trust in reputable brands. The 3W segment's record numbers indicate industry potential and a growing EV interest. Yet, addressing issues like OEM support and dealer engagement remains crucial.”

As for CV sales, the industry sold 73,065 commercial vehicles, a 2 per cent growth compared to 71,619 units sold in July 2022. However, month-on-month sales remained flat. On the other hand, Tractor sales in July grew 21 per cent at 90,765 units, as against 74,977 units sold in July 2022. Compared to 98,660 units sold in June 2023, MoM sales fell 8 per cent.