Automobile sector has seen growth across all segments, witnessing retail sales growth of 9% in August 2023, stated by FADA on Tuesday. The total retail sales across segments rose to 18,18,647 units last month, up 9%, from 16,74,162 units in August 2022. Combined retail sales across all segments increased to 1,818,647 units from 1,674,162 units in August CY2022.
Passenger vehicle registrations increased by 7% to 3,15,153 units last month from 2,95,842 units in August 2022. Passenger vehicles segments grew 7% YoY from 295,382 units in August CY2022 to 315,153 units in August CY2023. This was on the back of bolstered customer schemes, improved vehicle supply and postove market dynamics, as stated by FADA President Manish Raj Singhania.
Similarly, two-wheeler sales saw a jump of 6% to 12,54,444 units as compared with 11,80,230 units in the same month last year Two Wheelers segment grew 6% YoY from 1,180,230 units in August CY2022 to 1,254,444 units in August CY2023. Singhania added on two wheeler sales stating that despite positive growth, consumer sentiment remains ambivalent which impacts conversion rates and intensifying competition among key players. Commercial vehicle registrations increased by 3% YoY to 75,294 units in CY2023 from 72,940 units in CY2022. Tractor sales jumped 14% to 73,849 units in August as against 65,018 units in the year-ago period.
Three-wheeler retail sales saw a jump of 66% to 99,907 units in August from 60,132 units in August 2022. Singhania stated the industry is optimistic but cautious due to a multitude of active factors affecting different segments. The onset of the festive season, beginning with Onam, has uplifted market mood, improved liquidity and eased earlier bottlenecks in the supply chain across all categories, he added.
Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand, Singhania stated. This meteorological shortfall would not only jeopardise the yield of the ongoing kharif crops but also cast a shadow on the subsequent sowing season for rabi crops, he added. FADA said it collated vehicle data for August from 1,352 out of 1,438 RTOs (regional transport offices) across the country.
