Federation of Automobile Dealers Associations (FADA) has announced that total vehicle retail for January 2023 grew by 14 percent year-on-year (YoY). Carrying the positive momentum, all categories were in green with 2-wheeler, 3-wheeler, passenger vehicle, tractor and commercial vehicles growing by 10 percent, 59 percent, 22 percent, 8 percent and 16 percent respectively.
Two-wheeler sales up 10%
The 2-wheeler category recorded a growth of 10 percent YoY but in comparison to 2021 and pre-covid January 2022, the numbers fell by 7 percent and 13 percent respectively. There’s a significant rise of cost of ownership whereas the disposable income has not increased in the same ratio. As a result, the rural segment hasn’t been unlocked to its potential.
FADA notes that as per the economic survey 2022-23 tabled in parliament, rural wages will rise at a steady positive rate as inflation is expected to soften. It is expected that the same will help rise the 2-wheeler sales going ahead.
Three-wheeler sales up 60%
The 3-wheeler segment has grown by 60 percent YoY and 101 percent when compared to 2021 and is slightly down by mere 3 percent when compared to pre-pandemic levels in January 2020. The growth is attributed to EV fame-2 subsidy along with demand from commercial 3W space.
Passenger vehicle sales up 22%
The passenger vehicle segment maintains an uptick with YoY growth recorded at 22 percent. 10 percent from January 2021 and 8 percent from the pre-covid January 2020. Healthy bookings, good inquiry and improved supplies help this segment but the entry-level sub-segment continues to dip. The most popular segment of compact SUVs, SUVs and even luxury vehicles continue to witness minimum waiting of 2-3 months.
Commercial vehicles sales up 16%
As per the report, the continued demand in the market due to the replacement of fleet, growth in freight availability and government’s consistent push for infrastructure projects has nudged the CV segment above pre-covid numbers. Year-on-year, the CV category has grown 16 percent.
FADA has acknowledged that China’s factory gaining pace, and once global supplies of parts and semiconductors see a recovery aiding better vehicle supplies and lowering the waiting period in the future will further fuel growth for the PV category.
