The Federation of Automobile Dealers Associations (FADA) has released the vehicle retail data for August 2024, showing a modest year-on-year (YoY) growth of 2.88% despite adverse weather conditions and market challenges. Total vehicle retail sales reached 18,91,499 units in August, compared to 18,38,501 units in the same period last year.
Key Segment Performance
- Two-Wheelers (2W) saw a 6.28% YoY growth despite a month-on-month (MoM) decline of 7.29%.
- Passenger Vehicles (PV) experienced a YoY decline of 4.53% and a MoM drop of 3.46%.
- Commercial Vehicles (CV) registered a YoY fall of 6.05%, with an 8.5% MoM decline, largely attributed to industrial slowdown and heavy rains.
- Tractors saw a steep YoY decline of 11.39% as rural demand weakened.
FADA President, Mr. Manish Raj Singhania, highlighted that the 15.9% excess rainfall in August, especially in key auto markets, had a significant impact on retail performance. “The unpredictable weather, starting with heatwaves and followed by floods, disrupted consumer sentiment and purchase plans,” he said. In addition, high inventory levels, particularly in the PV segment, continue to strain dealers. As a result, FADA has urged financial institutions to regulate funding for dealers with excessive inventory.
FADA remains cautiously optimistic about the near-term future, banking on the upcoming festive season, including Ganesh Chaturthi and Navratri, to boost sales. However, continuous heavy rainfall, high inventory, and consumer caution during the Shraddh period are seen as potential headwinds.
