India’s auto retail sales witnessed a 10 percent growth in June compared to the same month last year, monthly data released by the Federation of Automobile Dealers Associations of India (FADA) showed on July 6.
All categories including two-wheelers, three-wheeler, passenger vehicles, tractor and commercial vehicles recorded growth rates of seven percent, 75 percent, five percent, 41 percent, and 0.5 percent, respectively.
However, retail sales are still slightly lower (three percent) than the pre-COVID levels even as overall figures have improved. The two wheelers is the primary segment which continues to experience a setback with sales 14 percent lower than pre-pandemic.
Commercial vehicles sales, on the other hand, have come out of the effect of COVID and grew by 1.5 percent when compared to June 19, FADA data shows. “June’23 recorded multiple segment all-time highs as 3W, PV and tractor showed maximum strength when compared to previous June’s,” FADA statement added.
For July, FADA said auto retail outlook signals mixed trends. Two-wheeler market anticipates continued economic pressures and supply challenges, while the reduction in FAME subsidies casts a
shadow over electric vehicles sales, the auto association said.
It added that the passenger vehicle segment also faces inventory pressures and demand-supply mismatches, impacting profitability, but the anticipation of a boost from the upcoming festive season beginning, end-August offers a hopeful outlook.
Also, erratic monsoon in India raises concerns about yield and potentially is impacting automobile sales, especially in rural areas, but anticipation of evenly spread rains going forward may revive rural demand and thus positively influence retails, FADA expects.
