Domestic Auto Retail Sale Surges 27% In April: FADA

In the last month, passenger vehicle retail sales experienced a jump of 16 per cent to reach 335,123 units, in contrast to 289,056 units recorded in the corresponding month of the previous year

Commercial vehicle retail also saw a modest increase, marking a 2 per cent year-on-year rise to 90,707 units in April

Source : Getty

Retail sales of passenger vehicles in India surged by 27 per cent year-on-year to reach 2,206,070 units in April, according to data released by the Federation of Automobile Dealers Associations of India (FADA) on Wednesday. This growth was observed across all segments, encompassing passenger vehicles and two-wheelers. In April 2023, the total number of vehicle registrations stood at 1,740,649 units.

In the last month, passenger vehicle retail sales experienced a notable uptick, climbing 16 per cent to reach 335,123 units, in contrast to 289,056 units recorded in the corresponding month of the previous year. In the same way, registrations for two-wheelers surged by 33 per cent recording at 1,643,510 units in April compared to 1,233,763 units in the same period last year. 

Commercial vehicle retail also saw a modest increase, marking a 2 per cent year-on-year rise to 90,707 units in April. Meanwhile, three-wheeler sales saw a 9 per cent year-on-year upswing, reaching 80,105 units, and tractor sales showed a marginal growth of 1 per cent, accounting for 56,625 units in April.

The president of FADA, Manish Raj Singhania, said, "While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant.”

He further highlighted that the passenger vehicle sector saw double-digit year-on-year growth, attributing it to an expanded range of models available and positive market sentiment, particularly during festive occasions such as Navratri and Gudi Padwa.

"Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth. Additionally, the lack of new models in some portfolios impacted market traction," Singhania added.

He also mentioned that the two-wheeler category experienced significant growth backed by improved supply chains and rising demand for 125cc models. Singhania highlighted that positive market sentiments, led by stable fuel prices, promising monsoon predictions, festive demands, and the wedding season, all contributed to the uptick in sales.

However, Singhania noted that sentiments in the commercial vehicle segment were dampened by elections, leading customers to postpone expansion initiatives. He added that limited financing options and regional issues such as water scarcity further affected performance in this segment.

Singhania observed that the domestic auto industry maintains a cautiously optimistic stance regarding its near-term outlook. "Market opportunities exist with rising customer interest in new models. However, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively," he opined.