Auto Retail Sales Rise 11 Per Cent Annually In 2023, 21 Per Cent In December: FADA
FADA says sales of passenger vehicle sales stood at 38,60,268 units last year, up 11 per cent from 34,89,953 units in 2022, while two-wheeler retails grew by 9 per cent last year to 1,70,61,112 units
India's retail auto sales rose 21 per cent in December 2023 to 1,990,915 units robust demand, as compared to 1,643,514 units in December 2022, the Federation of Automobile Dealers Associations (FADA) said on Monday. In the calendar year 2023, the retail sales were up 11 per cent to 23,867,990 units against 21,492,324 units in 2022. However, the sales in December 2023 were 30.25 per cent lower than 2,854,242 units in November.
According to FADA data, sales of passenger vehicle sales stood at 38,60,268 units last year, up 11 per cent from 34,89,953 units in 2022, while two-wheeler retails grew by 9 per cent last year to 1,70,61,112 units from 1,55,88,352 units in the January-December period of 2022.
On the other hand, retail sales of three-wheeler zoomed 58 per cent to 10,80,653 units last year from 6,81,812 units in 2022. Commercial vehicle retails saw an increase of 8 per cent at 9,94,330 units from 9,18,284 units in 2022 and retail sales of tractor jumped to 8,71,627 units, registering a jump of 7 per cent from 8,13,923 units sold in the preceding year.
Manish Raj Singhania, president at FADA, said the growth in sales of two-wheelers was mainly due to the abundance of marriage dates and the distribution of harvest payments to farmers, which enhanced their purchasing power. "Additionally, the availability of a wide range of models and variants, coupled with favourable weather conditions and a generally positive market sentiment, contributed to this robust growth. Enhanced product acceptance, particularly among the youth, and lucrative financial options, coupled with the anticipation of price increases in January 2024, spurred purchases," he said.
FADA said that it has collated the sales data from 1,355 out of 1,442 regional transport offices across India. The dealers' body noted that each sector within the auto retail industry is positioned for growth this year, navigating through the dynamic market conditions. Passenger vehicles are expected to see growth with new product launches and stable market sentiments, it pointed out.
The two-wheeler sector expects a boost from new model launches, especially in the first half of the year, and an overall better economic condition coupled with higher EV participation, the industry body said.
Improved customer sentiments, due to factors such as lower fuel prices and crop payments to farmers, are likely to drive demand, it added. Besides, the commercial vehicle segment is expected to grow on the back of increased government spending due to elections, infrastructural projects and demand in key industries like coal, cement, and iron ore.
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