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FADA Sales April 2023; Total Vehicle Retail Sales Show A Four Per Cent Decline; Three-Wheeler Showed A YoY Growth Of 57 Per Cent

For the first time in eight months, passenger vehicles witnessed a YoY degrowth
Jafar Rizvi
Jafar Rizvi
2 mins read
2023-05-04 14:11:32
Follow us on
FADA Sales April 2023; Total Vehicle Retail Sales Show A Four Per Cent Decline; Three-Wheeler Showed A YoY Growth Of 57 Per Cent
Key Highlights
  • The financial year 2024 started off with a slow vehicle retail performance in April
  • The implementation of OBD 2A norms led to vehicle price increases
  • The two-wheeler and Passenger Vehicle categories experienced YoY degrowth of 7 per cent and 1 per cent, respectively.

The Federation Of Automobile Dealers Associations (FADA) has shared the industry’s sales performance for April 2023. The financial year 2024 started with a slow vehicle retail performance in April, with total vehicle retails declining by 4 per cent. However, three-wheelers showed healthy year-on-year growth of 57 per cent, while tractors and commercial vehicles experienced marginal growth of 1 per cent and 2 per cent, respectively. On the other hand, two-wheelers and passenger vehicles faced setbacks, with declines of 7 per cent and 1 per cent, respectively.

FADA PV and 2 wheeler april 2023

Additionally, passenger vehicles witnessed year-over-year degrowth for the first time in eight months. The entry-level two-wheeler segment continued to struggle, down by 19 per cent compared to pre-COVID April 2019, contributing to a 12 per cent decline in total vehicle retails. To address this FADA urged the GST Council to consider reducing the GST rate from 28 per cent to 18 per cent for two-wheelers to help revive the struggling segment. Furthermore, implementing OBD 2A norms led to increased vehicle prices, prompting advanced purchases in March.

FADA 3 WHEELER and TRACTOR

Commenting on April 2023's performance, FADA President, Manish Raj Singhania stated, "Financial Year 2024 began on a subdued note, with the month of April experiencing a 4 per cent YoY overall decline. Although the three-wheeler segment enjoyed robust growth of 57 per cent YoY, the Tractor and CV segments only grew by a modest 1 per cent and 2 per cent, respectively. Meanwhile, the two-wheeler and Passenger Vehicle categories experienced YoY degrowth of 7 per cent and 1 per cent, respectively.

The Passenger Vehicle segment, which achieved record sales in FY23, slowed down in April, with retail decreasing by 1 per cent YoY. This was primarily due to last year's high base and the OBD 2A norms, which led to vehicle price increases and advanced purchases in March.”

Chart showing Vehicle Retail Data for Apr'23 with YoY comparison#FADARetail #ONOA #FADAResearch pic.twitter.com/Up7YGRp5n8

— FADA (@FADA_India) May 4, 2023
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Crop damage occurred in multiple states during April due to unfavourable weather conditions, such as unexpected rains and hailstorms. This has increased concerns among farmers and could potentially have an impact on the sales of entry-level two-wheelers and passenger cars.

# FADA Sales# FADA# FADA India# Sales Figures

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