May 8th 2024.
In a recent report, the Federation of Automobile Dealers Associations (FADA) revealed that India's total vehicle retail sales saw a significant increase of 27 percent year-on-year in April, reaching a total of 22,06,070 units. This growth was observed across all segments, including passenger vehicles and two-wheelers, indicating a strong demand in the market. In comparison, April 2023 recorded a total of 17,40,649 vehicle registrations.
The passenger vehicle category saw a 16 percent rise in retail sales, with 3,35,123 units sold last month compared to 2,89,056 units in the same period last year. Similarly, two-wheeler registrations also saw a significant increase of 33 percent, with 16,43,510 units sold in April as compared to 12,33,763 units in the same month last year. Commercial vehicle sales showed a modest 2 percent growth with 90,707 units sold, while three-wheelers and tractors saw a 9 percent and 1 percent increase respectively.
FADA President Manish Raj Singhania attributed this growth to the shift in Navratri from March to April this year. However, he also noted that the overall increase was significant, indicating a favorable market sentiment. He further stated that the passenger vehicle segment saw double-digit year-on-year growth, supported by the availability of new models and a positive market sentiment during festive events like Navratri and Gudi Padwa. However, Singhania also acknowledged the challenges posed by high competition, excess supply, and discounting, as well as the lack of new models in some portfolios.
The two-wheeler segment also saw notable growth, which Singhania attributed to improved supply and the increasing demand for 125cc models. He further stated that the market sentiment was boosted by stable fuel prices, a favorable monsoon outlook, and the ongoing marriage season. However, the commercial vehicle segment faced challenges due to elections and limited finance options. Regional factors such as water scarcity also impacted the performance of this segment.
Looking ahead, Singhania stated that the domestic auto industry remains cautiously optimistic about its near-term outlook. He noted that while there are market opportunities with rising customer interest in new models, the industry also faces challenges such as election-related uncertainty and financial constraints. FADA collected this data from 1,360 out of 1,503 RTOs across the country, providing a comprehensive overview of the current state of vehicle retail sales in India.
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