According to the FADA, September 2023 had a 20% YoY increase in retail car sales

 According to the FADA, September 2023 had a 20% YoY increase in retail car sales

Vehicle retail statistics for September 2023 was made available today by the Federation of Automobile Dealers Associations (FADA). FADA is India's top national organization for the automotive retail industry.

Data reported on October 9 revealed robust year-over-year (YoY) increase. "Automotive retail in September 2023 showcased a robust 20 percent double-digit YoY growth," the organization said.

According to the FADA statement, industry-wide car sales increased by 3.5 percent MoM, while the tractor category continued to decline and actually shrank by a staggering 26 percent.

Segment-specific figures

Two-wheelers had segment growth of 21.68 percent YoY, going from 1,078,286 units sold in September 2022 to 1,312,101 units sold in September 2023.

There were record-breaking sales of three-wheelers. "The segment stayed on track, achieving back-to-back records for highest retail sales. Sales for September reached a high of 102,426 units, registering a remarkable YoY growth rate of 48.58 percent, a MoM growth rate of 5 percent, and surpassing the 1 lakh unit threshold, according to FADA. In September 2022, 68,937 units were sold.

In September 2023, there were 332,248 units in the passenger vehicle (PV) sector, increasing 19.03 percent YoY from 279,137 units in the same month last year. Commercial vehicles (CV) also increased by 4.87 percent year over year. Sales increased from 77,054 units in September 2022 to 80,804 units in September 2023.

Only the tractor category exhibited de-growth. When compared to September 2022 (60,321), YoY sales in 2023 were down -9.66 percent (54,492 units).

Statistics and outlook

According to FADA, the whole retail environment has grown by 14 percent, which indicates "healthy recovery" in terms of recovery signals. "The two-wheeler category, for the first time, showed expanding of 2 percent, potentially marking the beginning of a comeback in rural markets," it said.

With 94 percent of the anticipated rains falling in September, according to FADA's analysis of the monsoon patterns, the country's worries of a drought have been "alleviated." For the time frame of October to December, the Indian Meteorological Department (IMD) predicts a "normal" north-east monsoon.

In addition, the apex body said that PV inventory is at "unprecedented levels" for the 60–65 day threshold. Dealers are "setting up an all-time high in anticipation of a bumper 42-day holidays period" at this time, the article's addition said.

In terms of anticipating the holiday season, FADA highlighted that October is jam-packed with celebrations. The unlucky Shraadh period, which lasts until October 14, is followed by the start of the nine-day Navratri festival on October 15.

Additionally, FADA has changed its posture from being "Cautiously Optimistic" to being "Optimistic" as the 42-day holiday season (Navratri and Deepawali) draws near. A "vibrant festive season for auto retail in India with monsoon worries dispelled," it was claimed, is what contributed to this.