Passenger Vehicle Sales Hit Record High In H1 FY'24: FADA

The Federation of Automobile Dealers Associations (FADA) has released the vehicle retail data for the first half of fiscal year 2024 (H1 FY'24), providing insight into the performance of various vehicle categories in India. In H1 FY'24, the data reveals a notable 9 per cent year-on-year (YoY) growth in the total auto retail sector. Each vehicle category exhibited positive YoY growth. Two-wheelers (2W) saw a 7 per cent increase, three-wheelers (3W) surged with an impressive 66 per cent growth, commercial vehicles (CV) showed a 3 per cent uptick, passenger vehicles (PV) grew by 6 per cent, and tractors (TRAC) recorded a significant 14 per cent growth.

The standout performer in this data is the three-wheeler (3W) category, which achieved an extraordinary 66 per cent YoY growth. It consistently outperformed its sales figures, month after month. H1 FY'24 witnessed 3W retailing a record-breaking 5,33,353 units, surpassing the H1 FY'19 figures of 3,58,187. This performance underscores the sector's resilience and adaptability amid the challenges presented by the ongoing pandemic.

The passenger vehicle (PV) segment, despite its own set of challenges, displayed steady growth, with a 6 per cent YoY increase. H1 FY'24 saw an all-time high PV retail at 18,08,311, surpassing the previous record set in H1 FY'23 at 17,02,905. This growth over two consecutive fiscal years reflects strong demand and a positive response to the dynamic offerings in the segment.

Tractor sales also joined the growth narrative, with record-breaking retail of 4,44,340 units in H1 FY'24, indicating a substantial 20 per cent YoY growth. This performance surpassed H1 FY'23 figures, which stood at 3,89,815, highlighting both market demand and growth in the tractor segment.

The commercial vehicle (CV) sector witnessed robust sales, reaching 4,65,097 units, a close second to its H1 FY'19 record of 4,72,492 units. However, the two-wheeler (2W) segment is under stress, still a considerable distance from its H1 FY'19 peak of 97,27,200 units, reflecting the diverse challenges and successes within India's auto retail sector.

Looking ahead, with the festive season approaching, the auto retail sector is anticipating a boost in consumer interest and a potential demand surge. The office of FADA is optimistic about the sector's prospects, transitioning from cautious optimism to a more hopeful and positive outlook for the market.