Indian Auto Retail Sector Sees Marginal YoY Growth In June 2024: FADA

The Indian automotive industry registered sales of nearly 18.96 lakh units in June 2024, according to the latest data from the Federation of Automobile Dealers Association (FADA). This was a year-on-year (YoY) growth of less than one per cent. June 2024 also saw a decline of more than nine per cent compared to May 2024. 

In June 2024, passenger vehicle sales amounted to more than 2.81 lakh which is around seven per cent lower compared to the sales in June 2023 and May 2024. FADA notes that despite improved product availability and substantial discounts, the demand for passenger vehicles declined due to the extremely hot weather conditions that resulted in 15 per cent less footfall in dealerships. 

Sales in the two-wheeler segment saw an increase of nearly five per cent with almost 13.76 lakh units sold in June. However, compared to May 2024, two-wheeler sales saw a dip of more than 10 per cent. Like the passenger vehicle segment, the two-wheeler segment also saw a decline in demand due to the extreme heat and election-related market slowdowns in rural areas. 

Similarly, sales in the three-wheeler segment saw a YoY growth of more than five per cent but a four per cent decline compared to last month. In June, 94,431 three-wheelers were sold across the country. 

The commercial vehicle segment saw a massive drop in sales as it could only manage to sell 72,747 units in June. This is a decline of nearly five per cent compared to June 2023 and more than 12 per cent compared to May 2024. FADA notes that the commercial vehicle segment bore the brunt because of delayed monsoon, poor market sentiment and postponed purchases. 

For July 2024, FADA predicts a cautiously optimistic but moderate outlook. It says that while some segments may see improved activity, overall growth is likely to be tempered by persistent challenges.