Auto retail celebrated a 20% YoY leap in September 23 as per FADA report

October 9, 2023
Category : 
Views: 728
Spread the word by Sharing:

New Delhi October 9, 2023: Federation of Automobile Dealers Associations (FADA) released its September 23 vehicle retail data that reported the automotive retail in September showcased a robust double-digit YoY growth of 20%. Except for Tractors, which witnessed a -10% de-growth, all other categories experienced growth, with 2W seeing a 22% increase, 3W at 49%, PV at 19%, and CV up by 5%.

Commenting on September 2023 Auto Retails, FADA President, Mr. Manish Raj Singhania said, "September's Auto Retail celebrated a 20% YoY leap, continuing the momentum from the previous month while marking a 3.5% MoM increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days.

The YoY analysis reveals broad-based growth across segments as 2W posted a 22% increase, 3W soared at 49%, PV grew by 19% and CV at 5%. However, Tractors diverged with a -10% decline. In comparison to pre- COVID benchmarks, the sector enjoyed a robust 14% uplift, with the 2W category registering growth (2%) for the first time.

Remarkably, 3W sales notched another all-time high in September, recording 1,02,426 units. This represents a 49% YoY and a 3% MoM growth, surpassing the previous record of 99,907 units set in August’23.

The 2W segment witnessed positive shifts as the festive season approaches. With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments. This uptick in demand was accompanied by heightened customer walk-ins and an overall positive market response. Additionally, better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season.

Sept’23 showcased a resilient CV segment, observing a noticeable demand in coal, cement and general market load sectors, with the passenger carrier segment also experiencing a favourable uptick. This  positive trend can be attributed to the adequate deployment of funds from the Central Government towards Infrastructure development, which fostered an environment for bulk deals, especially in Tippers and government sectors. Furthermore, there was a discernible improvement in market sentiment post- Covid, supporting a healthy traction in HCVs, Buses and LCVs and signalling a revitalized tourism market.

The PV category experienced a stimulating resurgence as the market enjoyed improved vehicle availability and an influx of new and refreshed models from various OEMs. This uplift was supported by enhanced supplies and an increasing variety in the product portfolio, answering to a diversifying consumer demand.

The market showed consistent demand for luxury cars and SUVs, signifying a robust consumer appetite for premium segments. The segment also witnessed the benefit of good pending bookings and the launch of promising products, laying the groundwork for potential growth in the upcoming festive season."

Near Term Outlook

As the festive season unfolds, a wave of anticipation and enthusiasm is expected to sweep across the automotive sector. In the 2W segment, although the initial half of the month might be quiet due to the Shraddh period, the aura of upcoming festivals like Durga Puja and Navratri is predicted to brighten the sales atmosphere, with enhanced customer sentiment and competitive pricing playing pivotal roles. The introduction of new models will further add to the optimism.

Similarly for CV, with the cessation of monsoons, a resurgence in infrastructure projects and essential goods transportation is anticipated in creating a robust demand. The market is likely to be buoyed by the availability of a broader range of vehicles and enticing finance options thus facilitating bulk purchases. In the PV segment, the market foresees a boost with the launch of new products, improved availability of popular models and continued success of recently unveiled vehicles.

With inventory for PV reaching an unprecedented 60-65 days threshold, it's crucial for OEMs to proceed with caution, avoiding excessive inventory pushes, thereby ensuring a market that's both vibrant and stable during the festive spree. The favourable monsoon patterns, with India receiving 94% of expected rainfall, set a positive backdrop for the festive season. 

As we move past the Shraadh period on October 14th, the market is poised for the onset of Navratri, heralding a 42-day festive window. With thes promising indicators, FADA adopts an Optimistic stance, anticipating a thriving festive season for the Indian Auto Retail sector.

CATEGORYSEP'23SEP'22YoY %AUG'22MoM %
2W13,12,10110,78,28621.68%12,54,4444.60%
3W1,02,42668,93748.58%99,9072.52%
E-RICKSHAW(P)46,70733,69938.60%46,1741.15%
E-RICKSHAW WITH CART (G)3,0381,78470.29%3,095-1.84%
THREE WHEELER (GOODS)9,0146,51038.46%9,060-0.51%
THREE WHEELER (PASSENGER)43,58126,89262.06%41,4825.06%
THREE WHEELER (PERSONAL)865265.38%96-10.42%
PV3,32,2482,79,13719.03%3,15,1535.42%
TRAC54,49260,321-9.66%73,849-26.21%
CV80,80477,0544.87%75,2947.32%
LCV46,21347,043-1.76%43,9295.20%
MCV5,6235,1858.45%5,895-4.61%
HCV25,23722,71311.11%22,13714.00%
Others3,7312,11376.57%3,33311.94%
Total18,82,07115,63,73520.36%17,70,1813.49%

Subscribe For Latest Updates

Sign up for the latest news and launches straight to your inbox

We promise not to spam you.

Spread the word by Sharing:
EVStory team is group of well seasoned journalists from the e-mobility segment with rich experience in the auto industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles from the same category:
STORIES

SIAM Sets Agenda for Streamlining Auto Industry Taxation

STORIES

Tata Passenger Electric Mobility unveils new outlets in Kerala

STORIES

ACMA Concludes 9th edition of iAutoConnect

STORIES

Festivals boost Auto Industry sales performance for October

1 2 3 134
EVStory.in - India's best EV Portal
Get a complete insight into the latest news, reports, features & in-depth analysis on the EV industry in India
Copyright 2022 EVStory LLP. All rights reserved. 
crossmenu