Indian Economy News

Passenger vehicles had a record-breaking January, and auto retail sales were up 15%.

  • IBEF
  • February 14, 2024

In January 2024, retail automobile sales surged by 15%, reaching 2.13 million units compared to 1.85 million units in January 2023. This growth spanned all vehicle categories, with two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles experiencing increases of 15%, 37%, 13%, 21%, and 0.1%, respectively, according to data from the Federation of Automobile Dealers Associations (FADA). The passenger vehicle (PV) segment achieved a record-breaking month, recording 393,250 units in retail sales, a 13% increase from January 2023, attributed to heightened SUV demand, new model introductions, increased availability, effective marketing, consumer schemes, and the auspicious wedding season. Concerns persist regarding PV inventory levels within the 50–55-day range, prompting FADA President, Mr. Manish Raj Singhania to call for a swift recalibration of production by original equipment manufacturers (OEMs) to align with market demand.

The two-wheeler market began the year positively, with improved vehicle availability, new model introductions, and a shift towards premium options contributing to increased demand. Two-wheeler sales reached 1.46 million units, up from 1.27 million units in January 2023, indicating a favorable outlook. The three-wheeler sector exhibited mixed results, with a 37% increase to 97,675 units in January 2024. The commercial vehicle (CV) segment depicted limited year-on-year growth due to factors such as increased infrastructure development, port activity, and positive crop yields, offset by challenges like extreme weather conditions, tightened liquidity, high vehicle costs, and restricted financing options. Retail sales in the CV sector slightly rose to 89,208 units during the month.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.