India (Commonwealth) _ Retail sales of autos increased by 9.57% to 1,863,868 units in June, according to figures gathered by industry group Federation of Automobile Dealers’ Association (FADA).Vehicle registrations increased by 7% (to 1,310,186 units), 75% (to 86,511 units), 5% (to 295,299 units), 41% (to 98,660 units), and 0.4% (to 73,212 units), respectively, for two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles.
FADA President Manish Raj Singhania stated, “”Despite a 10% YoY growth, the auto retail industry has suffered an 8% MoM drop, indicating a short-term slowdown in sales. When compared to all previous Junes, the month of June’23 produced all-time highs for the 3W, PV, and tractor categories.
Singhania stated that when compared to pre-COVID levels, overall auto retail fell by 3% due to poor sales in the two-wheeler market. In contrast, the CV segment increased 1.5% year on year, surpassing pre-COVID levels for the first time.
In the month under review, two-wheeler sales were hampered by supply restrictions from certain OEMs, as well as some weakening in demand due to broader economic conditions and higher entry-level costs. “New model introductions, holiday promotions, and seasonal factors could not significantly boost sales.” Two-wheeler sales fell 12% year on year, while electric vehicle sales fell 56% year on year, owing mostly to the government’s reduction of FAME subsidies, which resulted in significant price increases, Singhania added.
Dealers cited intermittent supplies of popular models and aging product concerns of slow moving variants in the passenger vehicle category. Singhania stated that the industry is still seeing an increase in demand for new models and that rural sales would accelerate further. Supply limits also influenced commercial vehicle registrations. Despite fluctuating demand and vehicle availability concerns, the government’s push for infrastructure development and coal mining growth boosted sales of heavy commercial vehicles.
