Automobile Retail Sales Up By 9% In August: FADA

Passenger vehicle registrations grew by 7 per cent, while the two-wheeler segment saw an increase of 6 per cent, both on a year-on-year (YoY) basis.

The industry’s outlook for September remains cautiously positive on account of the festive season, improvement in liquidity and supply chains across categories. ( Image Source :Getty )

Automobile retail sales in India increased by 9 per cent in August on account of growth in sales in all segments, including passenger vehicles and two-wheelers, the Federation of Automobile Dealers Association (FADA) stated on Tuesday. FADA President Manish Raj Singhania credited the growth in the passenger vehicle segment to the improvement in supply and enhanced customer schemes which created positive market sentiment in the segment. 

The total retail sales grew to 18,18,647 units last month, up from 16,74,162 units sold in the same period a year earlier. While passenger vehicle registrations stood at 3,15,153 units in August, up by 7 per cent from 2,95,842 units in the corresponding period last year, reported PTI.

The two-wheeler segment also saw an increase of 6 per cent in sales to 12,54,444 units in August, against 11,80,230 units sold in August last year. However, Singhania added that consumer sentiment remained ‘ambivalent, impacting conversion rates and intensifying competition’ among the major players in the market. 

Further, the commercial vehicle segment reported an increase in registrations by 3 per cent to 75,294 units in August, compared to 72,940 units in the same period last year. Tractor sales and three-wheeler retail sales both recorded an increase of 14 and 66 per cent respectively, in August, on a year-on-year (YoY) basis. 

The industry’s outlook for September remains cautiously positive on account of the festive season, improvement in liquidity and supply chains across categories, Singhania stated. He added, “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.” 

The association head warned that weak rainfall could lead to an increase in inflation, in turn negatively impacting demand and consumer’s purchasing capacity. He said, “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.” Highlighting the impact of these factors on the festive season, the FADA head stated that ‘such developments would be particularly inopportune as they would coincide with the peak of India's festive season.’