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

The Federation of Automobile Dealers Association (FADA) has released the vehicle sales data for the calendar year 2023 as well as December 2023. Total vehicle sales in 2023 amounted to 2.38 crore units, while total vehicle sales in December accounted for 19.90 lakh units. 

Total vehicle sales figure in 2023, saw an 11.05 per cent year-on-year growth with nearly 2.15 crore units sold in 2022. Of these, passenger vehicle sales comprised 38.60 lakh units, a 10.61 per cent YoY growth compared to 2022. Two-wheelers sales accounted for 1.70 crore units, a 9.45 per cent increase from 2022. 

The biggest increase was witnessed by the three-wheeler segment, registering a staggering 58.50 per cent growth in sales compared to 2022, with 10.80 lakh units sold. The tractor segment registered a growth of just 7.09 per cent with 8.71 lakh units sold. The commercial vehicle segment saw a growth of 8.28 per cent with 9.94 lakh units sold. 

December 2023 saw a YoY growth of 21.14 per cent, with 19.90 lakh units sold. Of these, passenger vehicle sales account for 2.93 lakh units, a YoY growth of just 2.65 per cent. Two-wheeler sales saw a robust YoY growth of 27.56 per cent with 14.49 lakh units sold in December. With just 95,449 units sold, the three-wheeler segment saw a massive growth of 36.40 per cent compared to the same period in 2022. The tractor and commercial vehicle segments grew by only 2.65 per cent and 0.22 per cent with 78,872 units and 73,896 units sold, respectively. 

FADA notes that the demand for SUVs has been strong “with extended waiting periods for key models”. It also states that this surge can be attributed to aggressive year-end promotions and the introduction of new models. Manish Raj Singhania, President of FADA, said, “This ongoing issue of high PV inventory, despite a slight decrease by the year's end, remains a critical area for OEMs to address, emphasizing the need for further moderation in inventory management.”

For January 2024, FADA predicts a cautiously optimistic outlook across segments. The association predicts that the two-wheeler segment will witness an uptick in sales post mid-January. Similarly, the commericial vehicle segment will see strong demand after mid-Janaury. Furthermore, the passenger vehicle segment is likely to witness growth despite concerns over high inventory levels. 

FADA predicts the market will have a positive trajectory in 2024. New model launches and higher EV participation is expected to aid the growth for two-wheelers and passenger vehicles. The upcoming elections are expected to increase government spending, along with infrastructural projects and demand from industry are likey to increase commercial vehicle sales in 2024.