Automobile retail sales see double-digit growth in February 2023

India’s automobile retail sales witnessed double-digit year-on-year growth in February, driven by robust sales across segments including passenger vehicles and two-wheelers, according to a report from the Federation of Automobile Dealers Associations of India.

The data was collated from 1,348 out of 1,434 RTOs across the country.

Total registrations across segments increased by 16% year-on-year (YoY) to 17,75,424 units in February 2023, as compared to 15,31,196 vehicles in February 2022. 

Passenger vehicle (PV) retail sales rose 11%  to 287,182 units last month, against 2,58,736 units in the same period, last year.

Experts said that the momentum for PV sales was mostly contributed by the launch of new models, continuously improving supply, coupled with a healthy booking-to-cancellation ratio, On-board diagnostics (OBD) norms, and increased demand during the wedding season. Multiple festivals in the near-term are also expected to push sales.

According to the report, two-wheeler registrations grew by 15% in February 2023 to 12,67,233 units, as against 11,04,309 units during the same month, last year. On the other hand, total retail sales of commercial vehicles in February 2023 increased by 17% to 79,027 units, as compared to 67,391 units in the same month last year. The report further mentioned that three-wheeler retail sales increased by 81% in registrations at 72,994 units, when compared with 40,224 units in February 2022.

Moreover, tractor sales grew by 14% year-on-year to 68,988 units in February.

The pace of recovery in demand in urban areas is faster than in rural areas. However, there is a noticeable decline in private consumption expenditure, due to reduced household spending due to inflationary pressure. Furthermore, the possibility of El Nino conditions returning in the Pacific may result in a weaker monsoon in India, leading to reduced output and higher prices, which could negatively affect auto sales.

Source: Indian Express