In August, the retail sales of automobiles in India saw a notable nine percent increase across all segments, including passenger vehicles and two-wheelers, according to the Federation of Automobile Dealers Associations (FADA). The total retail sales reached 18,18,647 units last month, marking a nine percent rise compared to August 2022 when the figure stood at 16,74,162 units.
Passenger vehicle registrations for the past month increased by seven percent, reaching 3,15,153 units compared to 2,95,842 units in August 2022. FADA President Manish Raj Singhania attributed this positive trend to improved vehicle supply and the extension of customer schemes.
Similarly, two-wheeler sales experienced a six percent increase, totaling 12,54,444 units, as opposed to 11,80,230 units in the same month of the previous year. Singhania noted that while there was growth, consumer sentiment remained uncertain, impacting conversion rates and intensifying competition in the industry.
Commercial vehicle registrations grew by three percent, reaching 75,294 units last month compared to 72,940 units in August of the previous year. Tractor sales surged significantly, rising by 14 percent to reach 73,849 units in August, compared to 65,018 units in the same period last year.
In the three-wheeler category, retail sales experienced a substantial 66 percent increase, reaching 99,907 units in August, compared to 60,132 units in August 2022.
Singhania expressed cautious optimism for the Indian automobile industry as the festive season, starting with Onam, has positively influenced market sentiment, improved liquidity, and resolved earlier supply chain challenges across all categories.
However, Singhania also highlighted concerns about inadequate rainfall potentially leading to increased inflation, affecting consumer purchasing power and reducing demand. He emphasized that such circumstances would coincide with India’s festive season, traditionally characterized by heightened consumer activity during Navratri and Diwali.
FADA collected vehicle data for August from 1,352 out of 1,438 regional transport offices (RTOs) across the country.