FADA expects car segment to hit highest sales in a decade this festive period
The Federation of Automobile Dealers Association has released their note for the month of September and on a year-on-year (YoY) basis, the total vehicle retailed for the month of September has seen a growth of 11 percent except tractors which decreased by 1.5 percent and all other categories were in the green.
Federation Of Automobile Dealers Associations president Manish Raj Singhania told CNBC-TV18 on Tuesday said that the car segment would hit the highest sales witnessed in a decade for the festive period.
FADA released September automobile sales numbers that showed domestic retail sales rose 11 percent as better supplies from manufacturers enabled dealers to ramp up customer deliveries amid the festive period. Total retail sales stood at 14,64,001 units as compared to 13,19,647 units in September 2021.
But though car sales remained strong with Maruti Suzuki, Mahindra & Mahindra, and Tata Motors beating expectations, domestic two-wheeler sales remained under pressure, and exports are also struggling.
All auto categories were in the green other than tractors, which decreased by 1.5 percent YoY, as per the FADA report.
Speaking to CNBC-TV18, Singhania said, “Navratri has responded well in all segments including two-wheelers, passenger vehicles and commercial vehicles, tractors. Every segment is responding well. In fact, passenger vehicles will create a new record in terms of sales in these 42 days (festive) period. It will be the decade's highest sales in cars that we will see.”
According to him, the two-wheeler segment is witnessing a positive change and is on a recovery path. The commercial vehicle (CV) segment is improving with an increase in fleet buying.
“Hero has been predominantly a leader in rural market and semi-urban market. However, the rural economy is still under stress impacting entry-level two-wheelers,” said Singhania.
He further said with ease of supply of semiconductors, the availability of passenger vehicles has increased, and so has production.
For more details, watch the accompanying video
(Edited by : Sangam Singh)
First Published: Oct 4, 2022 11:19 AM IST
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