The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for May’23.
Commenting on May 2023 performance, FADA President Mr Manish Raj Singhania stated, “May has been an encouraging month for the auto retail industry, demonstrating a robust 10% YoY growth across all vehicle categories. We have witnessed a resurgence in the 2W, 3W, PV, Tractor, and CV segments with growth rates of 9%, 79%, 4%, 10%, and 7% respectively. While there has been a slight -2% decline compared to pre-COVID levels, the overall retail figures have shown improvement. The 2W and CV sales did continue to face some challenges, recording high single-digit setbacks of -8% and -7% respectively.
Electric Vehicles (EVs) made impressive strides this month, contributing to 8% of the total vehicle retail. This was buoyed by a surge in 2W EV sales that contributed 7% and 3W EV sales contributing a substantial 56% of their respective total sales. The CV and PV categories also marked their presence in the EV landscape, with respective contributions of 0.5% and 2.5%.
The 2W sales were positively influenced by seasonal factors like the marriage season, changes in the FAME subsidies effective from June, and the recovery of rural demand, which hints towards a promising future in the aftermath of the COVID-19 pandemic.
In the Passenger Vehicle segment, the improved availability of vehicles, the strength of pending orders, and the robust demand for new launches drove a positive momentum, helping the segment rebound after a slump in the previous month.
The Commercial Vehicle segment experienced sustained growth, underpinned by the government’s focus on infrastructure development. The bus segment displayed a notable increase, driven by improved financing options and higher sales in academic institutions.
As we move forward, we remain committed to our customers and will continue to navigate these dynamic times, providing them with the best products and services that cater to their ever-evolving needs and preferences.”
Two-wheelers, which form a significant portion of the Indian market, witnessed a notable growth rate of 9.32%. A total of 14,93,234 units were sold in May 2023, compared to 13,65,924 units during the same period last year. This increase highlights the continued popularity and demand for two-wheelers among Indian consumers.
The three-wheeler segment displayed remarkable growth, with an impressive year-on-year increase of 78.57%. Passenger three-wheelers led the charge, recording a staggering 106.19% growth, followed by electric rickshaws at 74.65% and three-wheelers for goods transportation at 26.82%. The rise in three-wheeler sales indicates a growing preference for these versatile vehicles in various applications.
Passenger vehicles maintained a steady growth rate, with a 4.31% increase compared to May 2022. A total of 2,98,873 units were sold, emphasizing sustained consumer interest in purchasing cars and other passenger vehicles. Commercial vehicles also demonstrated positive growth, with a 7.19% increase in sales. This surge indicates the gradual recovery of the commercial vehicle segment and the revival of economic activities.
In the commercial vehicle category, medium and heavy commercial vehicles (MCVs and HCVs) performed exceptionally well, registering year-on-year growth rates of 26.82% and 15.14%, respectively. Light commercial vehicles (LCVs), however, experienced a slight decline of -2.44%. The overall commercial vehicle segment showcased a commendable growth rate, reflecting the resilience and adaptability of the Indian commercial vehicle market.
The total vehicle retail data for May 2023, encompassing all categories, exhibited a significant 10.14% increase compared to the same period in 2022. A total of 20,19,414 units were sold, indicating a strong rebound in the automotive industry and reaffirming the positive sentiment among consumers.
