Federation of Automobile Dealers Association (FADA) has released automobile retail sales numbers for June ‘23. Overall sales grew 10% over the same month in 2022, while there was a fall of 8% over May 2023. While 2W sales grew 7%, 3W grew a whopping 75% over last year.
3W are mostly auto rickshaws which ply short distances for last mile connectivity across the country and within cities. With a majority of offices asking their staff to work from their respective workplaces, there has been a huge surge in the number of people commuting everyday across public transport options such as suburban trains, Metro rail and city corporation managed-buses.
Tractor sales have grown 41% in June ‘23 over the last year which reflects a positive outlook ahead of the monsoon season, which has well begun in the last week of May ‘23.
In comparison to pre-COVID levels, the overall auto retail marked a marginal decrease of 3%, with 2W as the sole laggard. Conversely, the CV segment experienced a 1.5% growth compared to June’19, surpassing the pre-COVID levels for the first time.
FADA commended Maruti’s swift action to facilitate clearance of slow-moving model stockpiles by underwriting dealer interest costs, contributing positively to the segment.
With dealers noting sporadic supplies of popular models and aging product concerns of slow movingvariants, the segment still experienced an uptick in demand for new models and anticipates rural sales to pick up further pace.
July ’23’s Auto Retail Outlook signals mixed trends, according to FADA.
The two-wheeler market anticipates continued supply challenges and economic pressures, despite new schemes and expectations of monsoon-boosted sentiment. Meanwhile, the cutback in FAME subsidies casts a shadow over EV sales.
Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry.
FADA India represents over 15,000 automobile dealers having 26,500 dealerships employing 4 million people, including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry.
Historically, sales of passenger vehicles, 3W and commercial vehicles such as trucks and tractors have a deep bearing on the state of the economy. There has been a tectonic shift in the segment wise sale of PVs, with more than 50% attributed to compact SUVs and sedans. Sales of hatchbacks have been slowing while 2W sales were flat for the past several quarters.