As many as 2,029,541 automobiles had been offered final month, which is a rise of 13% over 1,794,866 models offered in February 2022, as per information collated by FADA (Federation of Car Sellers Affiliation).
FADA President Manish Raj Singhania stated automobile retails elevated throughout classes. Whereas gross sales of two-wheelers went up by 13.25% to 1,439,523 models within the month into consideration, these of three-wheelers rose 23.88% to 94,918 models. “The 2W market’s 13% YoY development was pushed by the agricultural sector, premium mannequin demand, and powerful entry-level phase efficiency, with broader product availability and compelling provides enhancing product acceptance. Components like beneficial marriage dates and improved financial circumstances additionally contributed to this constructive development”, Singhania knowledgeable.
Within the passenger automobile phase too, gross sales grew by 12.36% to 330,107 models final month – a document for the month of February. Nonetheless, excessive stock ranges ranging between 50-55 days stays a reason behind concern for retailers. Singhania stated the expansion in gross sales within the passenger automobile phase was pushed by the strategic introduction of latest merchandise and enhanced automobile availability. “Whereas the sector advantages from beneficial buyer sentiment and the profitable introduction of fashions in excessive demand, the persistently elevated stock ranges, remaining at 50-55 days, current a big concern”, he stated.
Singhania added it’s crucial that PV OEMs undertake changes in manufacturing to mitigate these excessive stock ranges, thereby lowering the monetary burden of carrying prices on sellers as it’s vital for sustaining the monetary well being of sellers.
In the meantime, gross sales of business automobiles elevated by 4.78% to 88,367 models in February, on again of fleet purchases, gross sales of faculty buses, robust sectoral demand and improved financing, regardless of obstacles like money movement shortages and election-related buy deferrals. Close to-term, the revival in rural consumption, together with elevated demand for premium and entry-level segments, are set to help gross sales of two-wheelers. Demand for three-wheelers and industrial automobiles too are anticipated to stay robust pushed by year-end rush and an infusion of funds into the market. Within the passenger automobile phase, promotional provides, improved availability of automobiles and seasonal components akin to marriages is prone to propel demand.“Nonetheless, the anticipation of elections casts a shadow over this constructive situation, with potential deferred purchases throughout segments. The industrial automobile sector, specifically, would possibly face a cautious strategy from prospects ready for the result of common elections”, Singhania stated.
Within the PV phase, the supply of well-liked variants too stay a priority. Exterior components like crop failures in rural areas might additionally dampen market sentiment and monetary liquidity pose extra hurdles to sustained development.
Total, the near-term outlook for March 2024 within the auto retail sector is one in all cautious optimism, Singhania stated.