Auto Sales Grow By 3.14 Per Cent YoY In March 2024: FADA

As per the vehicle retail data published by the Federation of Automobile Dealers Association (FADA) for March 2024, and financial year ‘24 - the Indian auto retail sector registered a 3.14 per cent growth last month. With the two-wheeler and three-wheeler segments registering significant Month-on-Month growth at 5 per cent and 17 per cent, respectively. Whereas, the passenger vehicle segment declined by 2 per cent Month-on-Month and 6 per cent year-on-year.

But throughout FY24’, the Indian auto retail sector achieved a notable 10 per cent Year-on-Year growth, with a two-wheeler, three-wheeler, passenger, vehicle, track, and CV segments registering growths of 9 per cent, 49 per cent, 8.45 per cent, 8 per cent, and 5 per cent, respectively. 

The 49 per cent year-on-year growth in the three-wheeler segment was driven by the introduction of cost-effective CNG fuel options, new EV models, expanding city landscapes, and an increase in demand in last-mile mobility in urban centres. Passenger vehicle sales throughout FY24’ were also at an all-time high at 8.45 per cent, which was mainly driven by the introduction of new models, SUVs bringing in the most contributions. 

March was also the last month of the FAME 2 subsidy and despite its expiry, the two-wheeler electric vehicle share jumped to 9.12 per cent for the first time in the country. Noteworthy was how the two-wheeler segment, in particular, grew despite economic concerns, election uncertainties, and intense competition. 

FADA also cited that despite a decline in urban consumer sentiment and election uncertainties, the automobile industry leveraged festive occasions, new product launches, and a shift towards electric mobility that helped them navigate towards recovery and growth. Moving forward, the industry will leverage economic growth, and favourable governmental policies and also expect a good monsoon that is slated to fuel demand.