Reflecting on July 2023, FADA President, Mr. Manish Raj Singhania said, “Auto retail grew 10% YoY in July, mirroring last month’s trend. However, the MoM decline continued highlighting short-term slowdowns.”Â
On a YoY basis, segments like 2W, 3W, PV, Tractor, and CV grew at rates of 8%, 74%, 4%, 21%, and 2%. On MoM basis, except 3W’s 9% growth, other segments declined. Compared to pre-COVID figures, auto retail decreased by -13%, with significant drops in 2W and CV at -23% and -4%.
3W hit record sales in July’23 at 94,148 units, a 74% YoY and 9% MoM increase, surpassing previous high of March’23’s 86,857 units.
In spite of hurdles such as intense monsoons and a shift towards electric vehicles (EVs) driven by soaring fuel costs, the two-wheeler (2W) sector demonstrated its resilience in July 2023. This was marked by a surge in demand and a continued preference for reliable brands. The remarkable figures in the three-wheeler (3W) segment underscore the industry’s promising future and the increasing attraction towards EVs. Nevertheless, it remains essential to address challenges like original equipment manufacturer (OEM) support and effective dealer engagement to sustain progress.
The sales of passenger vehicles (PVs) in July ’23 witnessed a blend of hurdles and successes. The period marked an uptick in orders and punctual original equipment manufacturer (OEM) deliveries, particularly with the launch of fresh offerings. Nonetheless, the sales performance was influenced by adverse monsoon conditions and flooding, particularly in North India. SUVs retained their position as a favored option among consumers.The commercial vehicle (CV) sector exhibited a varied landscape.
Despite ample stock availability and growth in segments like school buses, challenges stemming from unpredictable weather and elevated vehicle expenses had an impact on demand. However, a glimmer of positivity emerged from the impetus provided by infrastructure projects.
