FADA releases Aug’23 Vehicle Retail Data 

September 5, 2023
Category : 
Views: 430
Spread the word by Sharing:

New Delhi, September 5, 2023: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for Aug’23. Reflecting on Aug 2023, FADA President, Mr. Manish Raj Singhania said, "Auto Retail in August witnessed a promising 9% YoY growth, maintaining momentum similar to the preceding month. Concurrently, a 3% MoM uptick suggests a reversal in short-term trends.

On YoY basis, a comprehensive growth was observed across multiple segments, 2W at 6%, 3W at 66%, PV at 6.5%, Trac at 14%, and CV at 3%. During MoM, all segments experienced growth, with the exception of tractors, which saw a 19% decline. When compared against pre-COVID benchmarks, the auto retail sector indicated a modest 0.8% improvement, led by 2Ws recouping lost ground and mitigating the de-growth by 11%. Notably, 3W sales reached a historic high in August, registering 99,907 units—a YoY increase of 66% and a MoM surge of 6%, thereby eclipsing July 2023's record of 94,148 units.

Within the 2W segment, the Indian market displayed a complex yet steady landscape. Despite of positive growth, consumer sentiment remained ambivalent, impacting conversion rates and intensifying competition among key players.

The CV sector revealed a multi-faceted scenario: despite headwinds such as sluggish cargo movement, verticals like cement, iron ore, and coal exhibited robust demand. As the festive season approaches, indicators suggest a market recovery, reinforced by priority supply scheduling and a resurgence in travel related  sales. Aggressive promotional initiatives and enhanced customer sentiment further support this  optimistic outlook.

In the PV arena, improved vehicle supply, bolstered by expanded customer schemes, has maintained positive market dynamics. Despite such advances, supply chain bottlenecks persist, particularly in timely deliveries. The market has responded favourably to the introduction of new hybrid and CNG models; however, a constrained product range in popular segments, such as mid-size SUVs, continues to limit overall potential. It is alarming that inventory levels have exceeded a 60-day supply for the first time, even  before the onset of the Navratri-Diwali festivities—a trend that necessitates vigilant monitoring by PV OEMs."

Near Term Outlook

As the Indian Automobile Industry enters September, the outlook remains cautiously optimistic, shaped by a multitude of factors that vary across vehicle segments. The onset of the festive season, beginning with Onam, has uplifted market mood, improved liquidity and eased earlier bottlenecks in the supply chain across all categories.

In the 2W market, while a broader range of models is now available, subdued rural demand due to insufficient rainfall could temper sales growth. For CVs, although bulk deals and the favourable timing of the construction season in September add to the optimism, the real sales momentum is anticipated to pickup during the Navratri and Deepawali festival following the Shraadh period. The PV market, meanwhile, offers a mixed bag: new product launches and better stock availability are positive signs, but high customer discount expectations and the impact of the Shraadh period may act as small speed breakers. After a prolonged period of stagnation, rural demand is showing signs of a positive resurgence. However, this recovery remains tenuous, contingent on the performance of the final phase of the monsoon season.

Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand. This meteorological shortfall would not only jeopardize the yield of the ongoing kharif crops but also cast a shadow on the subsequent sowing season for rabi crops. Such de

velopments would be particularly inopportune as they would coincide with the peak of India's festive season, notably Navratri and Deepawali, traditionally periods of heightened consumer activity.

All India Vehicle Retail Data for Aug’23

E-RICKSHAW WITH CART (G)3,0951,446114.04%2,77311.61%
THREE WHEELER (GOODS)9,0606,45040.47%9,0100.55%
THREE WHEELER (PASSENGER)41,48222,90781.09%38,7617.02%
THREE WHEELER (PERSONAL)965574.55%7528.00%

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:

Tata Power strengthens its nationwide e-bus charging network with high-capacity fast charging points 


Magenta Mobility to deploy 100 units of Tata Ace EV.


BLive launches EV Rental Program For Last-Mile Delivery Operators


Ather Energy Expands Its Presence With Two New Experience Centres In Mumbai

1 2 3 127
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.