Domestic retail auto sales see 13% YoY growth: FADA
The 2W market’s 13 per cent YoY growth was driven by the rural sector, premium model demand, and strong entry-level segment performance.
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NEW DELHI: Indian auto retail saw, in February 2024, a robust overall growth of 13 per cent YoY, said FADA President, Manish Raj Singhania.
Every vehicle category, including 2W, 3W, PV, tractors, and CV, registered growth rates of 13 per cent, 24 per cent, 12 per cent, 11 per cent, and 5 per cent respectively, said the Federation of Automobile Dealers Associations (FADA) releasing the Vehicle Retail Data for Feb’24 on Thursday.
“The 2W market’s 13 per cent YoY growth was driven by the rural sector, premium model demand, and strong entry-level segment performance, with broader product availability and compelling offers enhancing product acceptance. Factors like favourable marriage dates and improved economic conditions also contributed to this positive growth,” Singhania said. The 3W market surged by 24 per cent YoY, with EVs making up 53 per cent of this growth, fuelled by first-time users and a shift towards electric e-rickshaws, alongside better market sentiment and consumer engagement.
The PV segment has exhibited an impressive 12 per cent YoY growth, achieving the highest sales figures ever recorded for the month of February. This upward trajectory was propelled by the strategic introduction of new products and enhanced vehicle availability. While the sector benefits from favourable customer sentiment and the successful introduction of models in high demand, the persistently elevated inventory levels, remaining at 50-55 days, present a significant concern.
“The CV segment grew by 5 per cent YoY, overcoming challenges through fleet purchases and school buses, strong sectoral demand and improved financing, despite obstacles like cash flow shortages and election-related purchase deferrals, highlighting the sector’s resilience and gradual recovery,” he added.
