Indian automobile retail sales surge 9% in August across all segments: FADA

In August, retail sales of automobiles in India increased by nine per cent, with growth observed across all segments, including passenger vehicles and two-wheelers, as reported by FADA, the dealers' body. The total retail sales across segments reached 18,18,647 units last month, marking a nine per cent rise compared to August 2022 when the figure was 16,74,162 units.

Passenger vehicle registrations in the past month rose by seven per cent, reaching 3,15,153 units compared to 2,95,842 units in August 2022. The President of the Federation of Automobile Dealers Associations (FADA), Manish Raj Singhania, stated that positive market dynamics in the passenger vehicle segment have been sustained due to improved vehicle supply and the extension of customer schemes.

In a similar vein, two-wheeler sales experienced a six per cent increase, reaching 12,54,444 units, as opposed to 11,80,230 units in the corresponding month of the previous year. Singhania highlighted that despite this positive growth, consumer sentiment remained uncertain, impacting conversion rates and intensifying competition among major players in the industry.

Commercial vehicle registrations grew by three per cent, totaling 75,294 units last month compared to 72,940 units in the corresponding month of the previous year.

Tractor sales witnessed a significant surge, rising by 14 per cent to reach 73,849 units in August, compared to 65,018 units in the same period last year.

In the realm of three-wheelers, retail sales experienced a substantial 66 per cent increase, reaching 99,907 units in August, compared to 60,132 units in August 2022.

"As September commences for the Indian automobile industry, the overall outlook is one of cautious optimism, influenced by a range of factors that differ across vehicle segments," remarked Singhania.

The onset of the festive season, commencing with Onam, has positively impacted market sentiment. It has also improved liquidity and resolved earlier supply chain challenges across all categories.

However, Singhania pointed out that inadequate rainfall could potentially lead to increased inflation, potentially impacting consumer purchasing power and reducing demand.

“This meteorological shortfall would not only jeopardise the yield of the ongoing kharif crops but also cast a shadow on the subsequent sowing season for rabi crops. Such developments would be particularly inopportune as they would coincide with the peak of India's festive season, notably Navratri and Deepawali, traditionally periods of heightened consumer activity," Singhania said.

FADA reported that it gathered vehicle data for the month of August from 1,352 out of 1,438 regional transport offices (RTOs) nationwide.