Vehicle sales up by 10.14% in May ‘23

The sales were contributed by seasonal factors like the marriage season, changes in FAME subsidies, and the recovery of rural demand

June 6, 2023

Vehicle sales reached 2,019,414 units in May 2023

Two-wheeler sales increased by 9% to 1,493,234 units

Sales of passenger vehicles increased by 4% to 298,873

Three-wheeler sales rose by 79% to 79,433 units, tractor sales increased by 10% to 70,793 units, and commercial vehicle sales grew by 7% to 77,135 units

Retail sales of motor vehicles in India saw a year-on-year increase of 10.14% in May 2023, reaching 2,019,414 units, according to data compiled by the Federation of Automobile Dealers Associations (FADA).

Across various categories, vehicle registrations showed positive growth, with two-wheelers rising by 9% to 1,493,234 units and passenger vehicles increasing by 4% to 298,873 units, last month.

On the other hand, three-wheeler sales rose by 79% to 79,433 units, tractor sales increased by 10% to 70,793 units, and commercial vehicle sales grew by 7% to 77,135 units. 

The experts highlighted the positive factors that influenced two-wheeler sales, including seasonal factors like the marriage season, changes in Faster Adoption and Manufacturing of Electric Vehicles (FAME) subsidies effective from June, and recovery of rural demand.

Experts said that although there has been a slight decline of 2% compared to pre-Covid levels, the overall retail figures indicate improvement. For instance, two-wheeler sales still faced challenges, recording a setback of 8%, while commercial vehicle sales experienced a 7% setback compared to May 2019.

The experts expressed optimism for increased demand in the passenger vehicle segment, particularly for new models, compact and full-sized SUVs, and electric vehicles (EVs). However, they also mentioned potential challenges related to inventory pressure and the availability of the right models. Commercial vehicle registrations continued to grow, supported by the government’s focus on infrastructure development.

To ensure healthy demand in the industry, FADA called for collective action to regulate inventory levels, negotiate lower interest rates, and support two-wheeler dealers by eliminating illegal multi-brand outlet (MBO) sales. Although FADA acknowledges near-term challenges, the association remains cautiously optimistic about the potential for growth through collaborative efforts and alignment with market trends.

Source: Economic Times

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