Auto Sales In February 2024 Grow By 13 Per Cent: FADA

The Federation of Automobile Dealers Association (FADA) has released the vehicle sales data for February 2024. Vehicle sales in the second month of the year amounted to 20.29 lakh units, witnessing a year-on-year growth of 13.07 per cent. 

Of the total sales figures, passenger vehicles comprised 3.30 lakh units, a 12.36 per cent growth compared to February 2023. Two-wheeler sales amounted to 14.39 lakh units, which is 13.25 per cent higher compared to the same period last year. 

The three-wheeler segment saw the highest year-on-year growth in February 2024, registering a 23.88 per cent increase with 94,918 units sold. The tractor segment only sold 76,626 units and witnessed a year-on-year growth of 11 per cent. The commercial vehicle segment witnessed the lowest year-on-year growth, registering a 4.78 per cent growth with 88,367 units sold. 

For March 2024, FADA predicts a cautiously optimistic outlook across segments. The association predicts that financial year-end activities generally spur purchasing across segments, along with improved availability and seasonal factors like marriages are likely to propel demand. However, the anticipation of elections casts a shadow over the positive growth, with potential deferred purchases across segments. 

Manish Raj Anand, President, FADA, said, “It is imperative for PV OEMs to undertake adjustments in production to mitigate these high inventory levels, thereby reducing the financial burden of carrying costs on dealers as it is vital for maintaining the financial health of dealers. Adopting this forward-looking stance is essential for ensuring the sustained growth and vitality of this segment.”