Auto mobile retail sales in India witnessed a 10 per cent annual growth in July driven by robust sales across passenger vehicles, two-wheelers and commercial vehicles, industry body FADA said on Monday.
Total retail sales across segments rose to 17,70,181 units last month, as compared to 16,09,217 units in July 2022. Passenger vehicle sales saw an increase of 4 per cent to 2,84,064 units last month, as compared to 2,73,055 units in the year-ago period, the Federation of Automobile Dealers Associations (FADA) said in a statement. “The month saw a surge in orders and timely OEM supplies, especially with the introduction of new products. However, severe monsoons and flood-like situations especially in North India, impacted sales,” FADA President Manish Raj Singhania said.
SUVs continued to remain a popular choice for buyers, he added. Two-wheeler retail sales rose by 8 per cent to 12,28,139 in July, as against 11,35,566 units in the same period last year. Singhania said despite challenges like heavy monsoons and a tilt towards EVs, the two-wheeler segment showed resilience with increased demand and trust in reputable brands. Commercial vehicle retail sales saw a 2 per cent year-on-year jump in sales to 73,065 units, from 71,619 units in July 2022.
“The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school buses, challenges from erratic weather and high vehicle costs affected demand,” Singhania said. Three-wheeler sales rose 74 per cent year-on-year, while tractor sales witnessed a healthy growth of 21 per cent last month. FADA, which represents over 15,000 automobile dealers, said it remains cautious in terms of business outlook going ahead. “While caution remains the operative word in the short term, FADA is hopeful about retail growth prospects, especially with the festive season on the horizon,” it said.
The entry-level category in the two-wheeler segment continues to be a cause for concern, FADA said. In the CV space, there are apprehensions regarding streamlined loan disbursements for buyers, it added. Besides, inventory level in PV has breached the 50-days mark in anticipation of upcoming festival season and the slowdown in entry-level car vertical remains, FADA said. “A larger concern is the IMD’s projection of a below-average rainfall in August, potentially leading to lower crop yields. This could impact the purchasing power, especially in rural regions,” it added.
Pingback: OYO to add 50 hotels, homestays in Rameswaram, Ramanathapuram