September 2023 auto retail sales up 20% YoY, growth strong says FADA

The Federation of Automobile Dealers Associations (FADA) today has released vehicle retail data for September 2023. FADA is an apex national body representing Automobile Retail in India.

The data released on October 9 showed year-on-year (YoY) growth was strong. "Automotive retail in September 2023 showcased a robust 20 percent double-digit YoY growth," the body said.

As per the FADA statement, MoM the industry enjoyed 3.5 percent total growth in auto sales; but the tractor segment continues to fall - and contracted a significant 26 percent.

Segment-wise numbers

Segment-wise, two-wheelers grew by 21.68 percent YoY, with 1,312,101 units sold in September 2023, compared to 1,078,286 in September 2022.

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The three-wheelers segment saw record breaking numbers. "The segment maintained momentum, setting consecutive all-time high retail records. Sales for September peaked at 102,426 units, marking a staggering 48.58 percent growth YoY; a 5 percent growth month-over-month (MoM); and breaching the 1 lakh units mark," FADA said. Sales in September 2022 were 68,937 units.

The passenger vehicles (PV) segment was also up 19.03 percent YoY at 332,248 units in September 2023, compared to 279,137 units the previous year same period. Further, commercial vehicles (CV) grew by 4.87 percent YoY. Sales were 80,804 units in September 2023, up from 77,054 in September 2022.

The tractors segment was the only one showing de-growth. YoY sales were down -9.66 percent in September 2023 (54,492 units), compared to September 2022 (60,321 units).

Indicators & outlook

In terms of recovery indicators, FADA noted that the 14 percent growth in overall retail landscape signals "healthy recovery". "The two-wheeler category, for the first time, showed a growth of 2 percent, potentially marking the beginning of a turnaround in rural markets," it added.

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Looking at the monsoon patterns, FADA said that the September rainfall had "alleviated India’s drought fears", with the country receiving 94 percent of expected rains. The Indian Meteorological Department (IMD) forecasts a ‘normal’ north-east monsoon for the October to December period, it added.

The apex body also pointed out that inventory for PVs are at "unprecedented levels" for the 60-65 days threshold. This comes as dealers are "establishing an all-time high in anticipation of a bumper 42-day festive period", it added.

In terms of the festive period anticipation, FADA noted that October is chock full of festivities. "The month begins with the inauspicious Shraadh period until October 14, post which the nine days of Navratri will commence from October 15.

Further, with the 42 days festive period (Navratri and Deepawali) approaching, FADA has shifted its stance from 'Cautiously Optimistic' to 'Optimistic'. This is on the back of a "a vibrant festive season for auto retail in India with monsoon worries dispelled", it added.

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