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After prolonged stagnation, rural demand for automobiles is picking up, but the recovery remains tenuous, contingent on the final phase of the monsoon season, the Federation of Automobile Dealers Associations (FADA) said on Tuesday.
“Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand,” Manish Raj Singhania, President, FADA, said while sharing the monthly retail sales data.
In the two-wheeler (2W) market, while a broader range of models is now available, subdued rural demand due to insufficient rainfall could temper sales growth. For commercial vehicles (CVs), although bulk deals and the favourable timing of the construction season in September add to the optimism, the real sales momentum is anticipated to pick up during the Navratri and Deepawali festival following the Shraadh period, Singhania said.
“The passenger vehicle (PV) market, meanwhile, offers a mixed bag: new product launches and better stock availability are positive signs, but high customer discount expectations and the impact of the Shraadh period may act as a small speed-breaker,” he said.
According to the industry body, automotive retail sales in August registered a robust year-on-year (YoY) growth of nine per cent, albeit marginally lower than previously reported figures. The uptick was consistent across multiple vehicle categories, with 2W seeing a six per cent increase, PV 6.5 per cent, CV three per cent, and tractor 14 per cent increase.
The 2W retail sales grew to 12,54,444 units during the month as compared with 11,80,230 units in August 2022
Similarly, PV sales grew at 3,15,153 units in August as compared with 2,95,842 units in the corresponding month last year.
CV sales were recorded at 75,294 units in August as compared with 72,940 units in the same month last year. Three-wheeler sales grew by 66 per cent to 99,907 units during the month as against 60,132 units in corresponding month previous year.
Tractor sales jumped to 73,849 units during the month as against 65,018 units in August 2022.
Overall, sales across categories reached 18,18,647 units as compared with 16,74,162 units in August last year, FADA added in its report.
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