Auto Sales Grow By 27%, PV By 16% In April 2024: FADA

The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for April'24, reporting an overall growth of 27 per cent. While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant. Comparing combined March and April 2024 with the same period last year shows a 14 per cent YoY growth for the entire industry. FADA did not share the numbers for EVs though.

Also Read: Electric Vehicle Sales See Surge In Financial Year 2024: FADA

The PV category experienced double-digit growth, supported by fresher vehicles and favourable market sentiments, particularly around festive events like Navratri and Gudi Padwa. The two-wheeler (2W), three-wheeler (3W), passenger vehicle (PV), tractor and commercial vehicle (CV) segments grew by 33 per cent, 9 per cent, 16 per cent, 1 per cent, and 2 per cent respectively. The two-wheeler segment saw notable growth due to improved supply and the increasing demand for 125 cc models.

Also Read: Vehicle Sales See YoY Growth Of 11% In 2023: FADA

Despite these positive trends, challenges remain. Election uncertainty continues to affect market sentiment, delaying customer conversions and stalling purchasing decisions. Financial constraints, extreme temperatures, and overcapacity in the CV segment could slow growth, while heavy discounting in the PV segment could impact profitability. Seasonal factors such as no marriage dates and a lack of major festive events may also influence demand.