NEW DELHI: Automobile retail sales grew 14% in January 2023 year-on-year over last year’s low base (due to covid-19 pandemic) as festivals and wedding season helped boost demand. However, sales in January 2023 were lower than in January 2020, the pre-Covid month.
All categories of vehicles saw an increase in annual sales in January 2023 with two-wheeler, three-wheeler, passenger vehicle (PV), tractor, and commercial vehicles cloaking a growth of 10%, 59%, 22%, 8%, and 16%, respectively, as per data released by the Federation of Automobile Dealers Associations (FADA).
“The 2-wheeler category showed a growth of 10% YoY but when compared to 2021 and pre-covid month of January 2020, it continued to see pressure as the same fell by 7% and 13%,” said FADA President Manish Raj Singhania.
He added, “While sentiments are improving at a snail’s pace and are better than what it was a year ago, rural demand is yet to fully come as the cost of ownership has shot up, while disposable income has not increased in the same ratio.”
PV sales, on the contrary, remain robust with SUVs and luxury vehicles still commanding a minimum waiting of 2-3 months.
With China’s factory activity again gaining pace, Fada said global supplies of parts and semiconductors will see a recovery, thus aiding better vehicle supplies and a lower waiting period. This will fuel growth for the already healthy passenger vehicle category.
Fada expects recent announcements in the Budget will help aid the overall growth of automobile retails.