FADA Sales May 2023: Cumulative Auto Sales Grow 10 Per Cent

The Federation of Automobile Dealers Association (FADA) has released the industry sales data for the month of May 2023. The auto sector posted a cumulative growth of 10.14 per cent over May 2022 with 20,19,414 units sold. Coming to the individual segments it was three-wheelers that posted the highest growth at 78.57 per cent while the passenger vehicle segment was the lowest with a 4.31 per cent year-on-year growth. Two-wheeler sales were up 9.32 per cent year-on-year, although FADA noted sales were still down 8 per cent compared to pre-covid levels. Cumulative sales were also down 2 per cent compared to pre-pandemic levels.

“We have witnessed a resurgence in the 2W, 3W, PV, Tractor, and CV segments with growth rates of 9%, 79%, 4%, 10%, and 7% respectively. While there has been a slight -2% decline compared to pre-COVID levels, the overall retail figures have shown improvement. The 2W and CV sales did continue to face some challenges, recording high single digit setback of -8% and -7% respectively,” said Manish Raj Singhania, President, FADA.

Singhania added that electric vehicle sales were also making “impressive strides” contributing about 8 per cent of overall sales. In the passenger vehicle segment EVs accounted for 2.5 per cent of the total sales of 2,98,873 units while of the 14,93,234 two-wheelers retailed in the month, 7 per cent were EVs. The greatest contribution was in the three-wheeler segment where EVs accounted for 56 per cent of the 79,433 units sold.

In the commercial vehicle segment, cumulative sales stood at 77,135 units, up 7.19 per cent over May 2022. FADA noted that EV penetration in the segment was minimal at just 0.5 per cent of all sales.

In the passenger vehicle space, Maruti Suzuki maintained its commanding lead in sales with 1,18,500 units sold in the month. Hyundai stood as the second best-selling brand with 45,297 units retailed followed closely by Tata with 41,824 units sold. Mahindra stood in fourth with 32,628 units retailed followed by Kia which shifted 16,819 units.

In the two-wheeler space, Hero continued to dominate sales with 5,30,658 units sold. Honda and TVS stood in second and third with 2,69,557 units and 2,52,247 units sold respectively with Bajaj in fourth with 1,86,052 units sold. Ola Electric took eighth place with 28,469 units sold followed by rivals Ather in ninth with 15,266 units retailed.

Speaking about the near-term outlook, FADA said that the auto sector still faced varying challenges. The apex dealer body said that while seasonal factors had a positive effect on two-wheeler sales in May it cautioned that factors such as the weather, inventory-related matters and regulatory norms could affect it going forward. Similarly, for passenger vehicles, FADA said that growing demand could put pressure on inventories of carmakers going forward.