The Federation of Automobile Dealers Associations (FADA) has released the Vehicle Retail Data for March 2023 and FY23. According to the report, March’23 witnessed double-digit growth of 14% YoY in all categories except tractors, which only grew by 4%.
The 2-wheeler category grew by 12% YoY but was down by -9% from its pre-Covid levels, while the 3-wheeler segment achieved record-high retail sales by growing 69%. The passenger vehicle segment saw a growth of 14% YoY, and the commercial vehicle category grew by 10% YoY.
FY’23 was the first full year without any impact of Covid after a gap of two years. Consequently, overall retail sales during the year experienced double-digit growth of 21%, with 2-wheelers, 3-wheelers, passenger vehicles, and commercial vehicles growing by 19%, 84%, 23%, and 33%, respectively. Tractors, however, only grew by 8%.
The 3-wheeler category maintained its impressive growth rate of 84% YoY, while retail sales of passenger vehicles reached a record high of 3.6 million vehicles, growing 23% YoY. Tractors registered single-digit growth of 8% YoY, but this segment clocked an all-time high retail of 8.27 Lakhs beating its previous high of 7.82 Lakh units in FY’21.
FADA President, Mr. Manish Raj Singhania, said, “Better supplies coupled with better sales kept the meter ticking. This apart from the increase in prices of OBD 2A vehicles coupled with multiple festivals in the month kept the sales healthy, though inquiry levels have now started decreasing.”
The report also highlighted that rural India, which still has not performed well, continues to remain under inflationary pressure. The availability of finance, along with the availability of alternative fuels and state subsidies, has contributed to the growth of the 3-wheeler segment.