The Federation of Automobile Dealers Associations (FADA) released the Vehicle Retail Data for February 2024, highlighting robust growth across all vehicle categories.
Key Highlights:
- Overall Growth: Indian Auto Retail experienced a substantial 13% YoY growth in Feb ’24.
- Two-Wheeler Market: Notable 13% YoY growth driven by the rural sector, premium model demand, and strong entry-level segment performance.
- Three-Wheeler Market: Significant 24% YoY increase, with Electric E-Rickshaws constituting 53% of the growth.
- Passenger Vehicle (PV) Segment: Impressive 12% YoY growth, achieving the highest February sales figures ever recorded.
- Commercial Vehicle (CV) Sector: Resilient with a 5% YoY growth, overcoming challenges like cash flow shortages and election-related purchase deferrals.
Challenges and Concerns:
- Inventory Levels: Elevated inventory levels in the PV segment at 50-55 days pose a significant concern, urging OEMs to adjust production to reduce dealer carrying costs.
- Near-Term Outlook: Cautious optimism for March 2024, driven by robust signals from the rural market and financial year-end buying activities.
- Election-Related Challenges: Anticipation of elections potentially deferring purchases, supply constraints, and external factors like crop failures impacting market sentiment.
Key Findings from Online Members Survey:
- Inventory: Average inventory for Passenger Vehicles ranges from 50-55 days, while Two-Wheelers range from 10-15 days.
- Liquidity: 49.80% respondents reported neutral liquidity, 32.81% good, and 17.39% bad.
- Sentiment: 43.48% neutral sentiment, 36.36% good, and 20.16% bad.
Expectations for March ’24:
- Growth: 56.13%
- Flat: 35.97%
- De-growth: 07.91%
Category-wise Vehicle Retail Data for Feb ’24:
- 2W: 14,39,523 units, 13.25% YoY growth
- 3W: 94,918 units, 23.88% YoY growth
- PV: 3,30,107 units, 12.36% YoY growth
- Tractors: 76,626 units, 11.00% YoY growth
- CV: 88,367 units, 4.78% YoY growth
Disclaimer: The data does not include figures from TS & LD. Vehicle Retail Data has been collated as of March 6, 2024, in collaboration with the Ministry of Road Transport & Highways, Government of India, and gathered from 1,358 out of 1,445 RTOs.
