New Delhi: Automobile retail sales in India saw double-digit growth in 2023-24 driven by record offtake of passenger vehicles, three- wheelers and tractors, dealers’ body FADA said on Monday.
The retail sales across segments rose by 10 per cent to 2,45,30,334 units last fiscal as compared with 2,22,41,361 units in 2022-23.
The Indian automobile sector achieved a commendable double-digit growth across categories with two-wheelers, three-wheelers, passenger vehicles (PV), tractors and commercial vehicles registering strong demand, Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement.
Notably, the PV, three-wheeler and tractor segments set records, surpassing previous years’ performances, he added.
PV registrations rose to 39,48,143 units last fiscal, an increase of 8 per cent as compared with 36,40,399 units in 2022-23. Factors such as improved vehicle availability, a compelling model mix and the launch of new models played pivotal roles, Singhania said.
“Enhanced supply dynamics, strategic marketing efforts, ever expanding road infrastructure and strong demand in the SUV segment significantly contributed to this success,” he added.
Three-wheeler retails saw an increase of 49 per cent to 11,65,699 units last fiscal from 7,83,257 units in FY23. The sales growth in the segment was fuelled by the introduction of cost-effective CNG fuel options and new EV models, alongside strong market sentiment and the seamless integration of high-quality after-sales service, Singhania said.
Tractor sales rose to 8,92,313 units last fiscal from 8,29,639 units in 2022-23. Two-wheeler sales rose 9 per cent to 1,75,17,173 units in FY24 as compared with 1,60,27,411 a year ago. The segment benefited from enhanced model availability, positive market sentiment and recovery of rural markets post COVID pandemic, Singhania said.
The growth in EVs and strategic launches in the premium segment also played a critical role, overcoming challenges such as supply constraints and heightened competition, he added. Commercial vehicle registrations saw an increase of 5 per cent last fiscal at 10,07,006 units aided by improved vehicle supply and increased freight movement which enhanced replacement purchases.
In March, overall registrations saw an increase of 3 per cent year-on-year at 21,27,177 units. Passenger vehicle retails declined by 6 per cent to 3,22,345 units as compared with 3,43,527 units in March 2023.
Two-wheeler registrations last month however rose 5 per cent year-on- year to 15,29,875 units from 14,50,913 units in the year-ago period. Three- wheeler sales rose 17 per cent year-on-year to 1,05,222 units last month.
Commercial vehicle sales declined by 6 per cent to 91,289 units last month from 96,984 units in March 2023. Similarly, tractor registrations declined by 3 per cent to 78,446 units last month from 81,148 units in the year-ago period.
FADA, which gathered data from 1,360 out of 1,447 RTOs across the country, said that heading into FY25, the Indian auto industry is poised for growth amidst a mix of optimism and challenges.
The excitement around new product launches, particularly electric vehicles, sets a forward-looking tone, it said. Besides, the manufacturers are gearing up with better supply chains and an array of models to meet diverse consumer demands, it added.
“Economic growth, favourable government policies and an anticipated good monsoon are expected to fuel demand, especially in rural areas and the commercial vehicle sector, which is closely linked to infrastructure projects and economic activity,” it stated.
Market sentiment is cautiously optimistic, with the industry banking on improved customer engagement and financing schemes to boost sales, FADA said. The PV segment faces challenges like high base and intense competition, it added.
PTI