The Federation of Automobile Dealers Associations (FADA) has unveiled the Vehicle Retail Data for January 2024, portraying a promising start for the calendar year with robust growth in various automotive segments.
Commenting on the January’24 Auto Retails, Mr. Manish Raj Singhania, President of FADA, expressed optimism, stating, “January 2024 marked a promising beginning for the year, exhibiting a 15% overall retail growth compared to the previous year. This growth was observed across all vehicle categories, including 2W, 3W, PV, Tractors, and CV, with impressive year-on-year growth rates of 15%, 37%, 13%, 21%, and 0.1%, respectively.”
Several positive trends were identified in the 2W market, indicating a strong start to the year. Factors such as improved vehicle availability post-OBD 2 norm implementation, the introduction of new models, and a shift towards premium options contributed to increased demand. The rural market’s continued strength, supported by good crop production estimates and ongoing government support, played a pivotal role in sustaining demand for 2Ws.
The Passenger Vehicle (PV) segment achieved a significant milestone by reaching an all-time high in January, retailing 3,93,250 vehicles and surpassing the previous record set in November 2023. However, concerns persist regarding high inventory levels in the 50-55-day range, posing a challenge for auto dealers.
Tractor sales rebounded in January, driven by anticipation of a good Rabi crop output and favorable weather conditions for wheat cultivation. The Commercial Vehicle (CV) segment showed a modest growth of 0.1%, with potential demand taper in the fourth quarter due to a high base effect and upcoming elections.
Mr. Singhania emphasized the need for caution amid market uncertainties, supply constraints for specific high-demand models, and potential finance and liquidity challenges. He highlighted the importance of adaptability and strategic production planning for Original Equipment Manufacturers (OEMs) to ensure sustained success and market stability.
Looking ahead to February 2024, the industry outlook leans towards cautious optimism, with growth potential in the near term. Factors such as the ongoing marriage season, anticipated income from agricultural sales, new product launches, and favorable post-Union Budget policies are expected to drive growth in various segments.
FADA remains committed to providing insights and support to the Auto Retail Industry, collaborating with stakeholders to navigate challenges and promote sustainable growth.
