April 5, 2023
Two-wheeler sales grew by 12% and three-wheelers by 69%
Passenger Vehicles grew by 14%, and Commercial Vehicles by 10%, while tractors only grew by 4%
FY23 was the first full year without any Covid impact, resulting in a 21% growth in retail sales for the year
PV retail sales touched a record of 3.6 million vehicles
Automotive retail sales in India increased by 14% YoY in March 2023, while sales grew by 21% YoY for the whole of FY23, according to a report from the Federation of Automobile Dealers Associations (FADA).
Most categoriessaw double-digit growth in March and for the financial year, including two-wheelers, three-wheelers, passenger vehicles (PVs), and commercial vehicles (CVs). However, the retail sales of 22.1 million for FY23 were still 12% lower than the pre-Covid level of 25 million due to an 18% drop in the two-wheeler segment.
In March, two-wheelers grew by 12%, three-wheelers by 69%, PVs by 14%, and CVs by 10%, while tractors only grew by 4%. Despite the increase in two-wheeler sales in March, they were still down by 9% compared to pre-Covid levels in FY20. Experts attributed the growth in the PV segment to better supplies, better sales, an increase in prices of On-board diagnostics (OBD) 2A vehicles, and multiple festivals.
FY23 was the first full year without any Covid impact, resulting in a 21% growth in retail sales. All categories, except for tractors, saw double-digit growth, with three-wheelers maintaining their growth rate of 84% YoY, and electrification in this category reaching 52%, driven by the e-rickshaw segment.
PV retail sales touched a record of 3.6 million vehicles, growing 23% YoY, and the tractor segment clocked record-high sales of 827,000 units, growing by just 8%. According to the experts, two-wheeler sales growth would only occur with a recovery in rural demand.
Source: Business Standard