Auto Retail Sales In June 2023 Grow By 10 Per Cent: FADA

The Federation of Automobile Dealers Associations (FADA), has announced that auto retail sales achieved 10.14 per cent growth in the month of June 2023, selling 20,19,414 units as compared to 18,33,421 units sold in June 2022. The growth includes positive performances across all vehicle categories including 2W, 3W, PV, Tractor, and CV with respective growth rates of 6.77 per cent, 75.48 per cent, 4.79 per cent, 41.04 per cent, and 0.44 per cent.

Manish Raj Singhania, President, FADA said, “Despite a 10% YoY growth, the auto retail sector has seen an 8 per cent MoM dip, indicating a short-term deceleration in sales. In comparison to pre-COVID levels, the overall auto retail market marked a marginal decrease of 3 per cent, with 2W as the sole laggard.”

The month of June 2023, showcased an increased penetration of EVs, accounting for 8 per cent of total sales, with 2W contributing 7 per cent, 3W contributing 56 per cent, CV contributing 0.5 per cent and PV contributing 2.5 per cent respectively. The sales of 2W were positively influenced by the marriage season and the anticipated changes in FAME subsidies, set to be effective in June, which drove higher sales of 2W EVs.

The PV segment rebounded after a decline in the previous month, driven by improved availability, strong pending orders, and robust demand for new launches, contributing to the segment's positive momentum. The CV sales experienced sustained growth, attributed to the government's focus on infrastructure development, with the bus segment also displaying a notable increase due to improved financing options and higher sales in academic institutions.