Car retails continue robust run, two-wheeler sales now in green

By India Today Auto DeskThe automobile retail sales, including those of passenger vehicles (PVs), two-wheelers, three-wheelers, commercial vehicles (CVs) and tractors, were in green in February 2023, according to the latest data shared by the industry body Federation of Automobile Dealers Associations (FADA).

The overall retails in the industry increased a healthy 15.95% year-on-year (y-o-y) at 1,775,424 units in February 2023 from 1,531,196 units in February 2022.

ALSO READBaleno, Ignis, Ciaz, XL6, Grand VitaraMaruti discounts, offers in March 2023

The PV segment carried on with its bullish run as the sales jumped 10.99% y-o-y at 287,182 units in February 2023 from 258,736 units in the year-ago month. These were also the highest-ever PV retails in February.

“Launch of new models and continuously improving supply coupled with a healthy booking to cancellation ratio and wedding bells kept the momentum going for this already well-to-do segment (PV),” said Manish Raj Singhania, President, FADA.

Even the two-wheeler segment performed relatively better during the month as the sales climbed 14.75% y-o-y at 1,267,233 units from 1,104,309 units in the same month last year.

Regarding the two-wheeler segment, Singhania said that the change in on-board diagnostics (OBD) norms, which comes into effect from April 1, along with marriage season, kept the sales ticking. “Overall, high inflation and poor sentiment have kept the customers at bay,” he added.

At the end of February 2023, the average inventory for PVs was in the range of 35-37 days. For two-wheelers, it was 20-25 days.

Three-wheeler sales rose 81.47% y-o-y at 72,994 units in February 2023 from 40,224 units in the year-ago month. The CV segment clocked a growth of 17.27% y-o-y at 79,027 units during the month from 67,391 units in the same month last year. Even tractor retails increased 13.96% y-o-y at 68,988 units in February 2023 from 60,536 in February 2022.

“The three-wheeler category has seen drastic growth due to central government and state government subsidies along with good scheme promotion done by the states. Along with this, aggressive finance schemes continue to aid growth for this category,” Singhania said.

“Walk-in enquiries for CVs improved during the month. Apart from this, demand has also increased due to changes in OBD norms, which will see price hikes. On the government’s side, infrastructure spending has been healthy. This is also aiding better sales,” he added.

Source – FADA