India's Vehicle Retail Grows 20 Per Cent YoY; Up 14 Per Cent Over Pre-Covid Level

The Federation of Automobile Dealers Associations (FADA) has released the retail sales numbers of the auto industry for September 2023. The industry posted a year-on-year growth of 20.36 per cent with 18,82,071 units retailed in the month, up from 15,63,735 units in September 2022. Numbers were more subdued month-on-month with overall sales up 3.49 per cent over August 2023.

Moving to the individual segments, two-wheeler sales grew by a notable 21.68 per cent over September 2022 at 12,12,101 units. The segment reported sales of 10,78,286 units in the same period last year. The 2023 numbers also saw the segment post a growth of about 2 per cent over pre-COVID numbers. Two-wheeler sales have for a long time stayed below its pre-covid peak in the Indian market.

“The 2W segment witnessed positive shifts as the festive season approaches. With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments. This uptick in demand was accompanied by heightened customer walk-ins and an overall positive market response. Additionally, better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season,” said Manish Raj Singhania, President, FADA.

Passenger Vehicle sales too saw a strong growth with 3,32,248 units sold in September 2023. This marked a 19.03 per cent growth over the 2,79,137 units sold in the same month last year. Sales were also up in comparison to August 2023 where the segment had posted sales of 3,15,153 units.

“The PV category experienced a stimulating resurgence as the market enjoyed improved vehicle availability and an influx of new and refreshed models from various OEMs. This uplift was supported by enhanced supplies and an increasing variety in the product portfolio, answering to a diversifying consumer demand. The market showed consistent demand for luxury cars and SUVs, signifying a robust consumer appetite for premium segments,” Singhania said.

The three-wheeler segment touched a new monthly high in September 2023 with over 1 lakh units sold. FADA reported total sales of 1,02,4296 units – up 49 per cent year-on-year. The previous monthly high was reported in August 2023 where 99,907 units were retailed in the segment.

The Commercial Vehicle segment also posted a year-on-year growth of 4.87 per cent rising from 77,054 units in September 2022 to 80,804 units in the same month this year. Sales in the tractor segment however posted a decline of 9.66 per cent over September 2022 and a 26.21 per cent decline as compared to August 2023. Sales in the segment stood at 54,492 in September 2023.

FADA said it had an optimistic outlook for the upcoming festive season. The dealer body said that it expected sales across segments to pick up post the Shraddh period which would be further buoyed by the launch of new models and variants.