The Business Bytes
TBB BUREAU
NEW DELHI, OCT 9, 2023
The automotive retail in September 2023 showcased a robust double-digit YoY (year-on-Year) growth of over 20 per cent as demand soared across vehicle segments with the onset of festival season, Federation of Automobile Dealers’ Associations (FADA) said on Monday.
Overall automobile registrations rose to 18,82,071 units in September 2023 from 15,63,735 units in September 2022, FADA said in a statement.
The YoY analysis reveals broad-based growth across segments as two-wheeler sales grew 22 per cent, three-wheeler retails soared 49 per cent, passenger vehicle sales grew 19 per cent, while commercial vehicles saw a sales growth of 5 per cent, FADA President Manish Raj Singhania said.
Tractor retail sales, however, declined 10 per cent last month, as compared to the same month last year, he noted.
Passenger vehicle registrations rose 19 per cent YoY last month to 3,32,248 units, as compared to 2,79,137 units in September 2022, as vehicle availability improved.
New product launches also led to improved offtake of vehicles last month, Singhania said.
Two-wheeler retail sales grew by 22 per cent to 13,12,101 units, last month as against 10,78,286 units in September 2022.
”With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments,” Singhania said.
Commercial vehicle registrations rose by 5 per cent YoY to 80,804 units last month. Three-wheeler sales saw an increase of 49 per cent to 1,02,426 units last month, as against 68,937 units in September 2022.
Tractor sales declined to 54,492 units, as compared to 60,321 units last September.
On sales outlook, Singhania said: As the festive season unfolds, a wave of anticipation and enthusiasm is expected to sweep across the automotive sector. In the 2W segment, although the initial half of the month might be quiet due to the Shraddh period, the aura of upcoming festivals like Durga Puja and Navratri is predicted to brighten the sales atmosphere, with enhanced customer sentiment and competitive pricing playing pivotal roles. The introduction of new models will further add to the optimism.”
Similarly for CV, with the cessation of monsoons, a resurgence in infrastructure projects and essential goods transportation is anticipated in creating a robust demand. The market is likely to be buoyed by the availability of a broader range of vehicles and enticing finance options thus facilitating bulk purchases. In the PV segment, the market foresees a boost with the launch of new products, improved availability of popular models and continued success of recently unveiled vehicles.
With inventory for PV reaching an unprecedented 60-65 days threshold, it’s crucial for OEMs to proceed with caution, avoiding excessive inventory pushes, thereby ensuring a market that’s both vibrant and stable during the festive spree. The favourable monsoon patterns, with India receiving 94 per cent of expected rainfall, set a positive backdrop for the festive season. With these promising indicators, FADA adopts an optimistic stance, anticipating a thriving festive season for the Indian Auto Retail sector.
