Automobile Retail Sales In India Log Double-Digit Growth In FY24; PV Sales Shine
The Federation of Automobile Dealers Associations (FADA) on Monday revealed that retail sales in the Indian automobile sector soared by double digits during the fiscal year 2023-24. The remarkable growth was predominantly driven by unprecedented demand for passenger vehicles (PVs), three-wheelers, and tractors. According to FADA, retail sales across various segments surged by 10 per cent, reaching a total of 2,45,30,334 units in the last fiscal year, compared to 2,22,41,361 units in the previous year.
FADA President Manish Raj Singhania said the impressive performance of the Indian automobile industry across all categories. Notably, the passenger vehicle, three-wheeler, and tractor segments achieved record-breaking sales figures, surpassing previous years’ performances.
PV sales
PV registrations climbed to 39,48,143 units, marking an 8 per cent increase from the previous fiscal year. Singhania attributed this growth to factors such as improved vehicle availability, a diverse model mix, and the introduction of new models.
Three-wheeler sales
The three-wheeler segment witnessed a staggering 49 per cent increase in sales, reaching 11,65,699 units, driven by the adoption of cost-effective CNG fuel options, introduction of new electric vehicle models, and robust market sentiment.
Tractor sales
Similarly, tractor sales rose to 8,92,313 units, showcasing a significant uptick from the previous fiscal year. Two-wheeler sales also experienced a notable increase of 9 per cent, reaching 1,75,17,173 units, buoyed by enhanced model availability and the recovery of rural markets after the pandemic.
EV sales
Singhania said the critical role played by the growth in electric vehicles (EVs) and strategic launches in the premium segment in overcoming challenges such as supply constraints and heightened competition. While overall registrations in March saw a 3 per cent year-on-year increase, PV sales saw a slight decline of 6 per cent, with commercial vehicle sales dipping by 6 per cent as well. However, two-wheeler registrations rose by 5 per cent during the same period.
Looking ahead to the fiscal year 2024-25, FADA expressed optimism about the Indian auto industry’s growth prospects, citing factors such as economic expansion, favorable government policies, and anticipated good monsoon. The industry is poised to leverage improved supply chains and diverse product offerings to meet evolving consumer demands.
Despite the challenges posed by intense competition and a high base in the passenger vehicle segment, FADA remains cautiously optimistic, banking on enhanced customer engagement and financing schemes to drive sales. Additionally, the commercial vehicle sector is expected to benefit from infrastructure projects and economic activity in the coming year.
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