Auto Retail Gross sales Rise 7% In January; PV Phase Up 16%: FADA | Auto Information

New Delhi: Car retail gross sales in India rose 7 per cent year-on-year in January at 22,91,621 items, pushed by strong demand throughout segments, supplier’s physique FADA mentioned on Thursday. Total retail gross sales stood at 21,49,117 items in January 2024. Passenger car retail gross sales jumped 16 per cent year-on-year to 4,65,920 items final month. 

“Our observations point out that every car class –2W, 3W, PV, tractor and CV– witnessed optimistic momentum, pointing towards sustained client confidence and regular market restoration,” the Federation of Car Sellers Associations (FADA) President C S Vigneshwar mentioned in a press release.

Many sellers famous improved demand but additionally pointed to final 12 months’s heavy discounting, which helped clear older fashions and shift registrations, Vigneshwar mentioned. Stock ranges have improved, dropping by round 5 days to 50-55 days, suggesting improved supply-demand steadiness, he added. 

Two-wheeler retails stood at 15,25,862 items final month, a rise of 4 per cent, as in contrast with 14,65,039 items in identical month final 12 months. Gross sales in city areas outpaced rural on a Y-o-Y foundation, rising by 5 per cent in comparison with 4 per cent.

Sellers cite new mannequin launches, marriage season demand and improved financing as key progress drivers, Vigneshwar acknowledged. Nonetheless, considerations about rising rates of interest, rural liquidity challenges and market uncertainty nonetheless linger, he added. Industrial car gross sales rose 8 per cent year-on-year in January to 99,425 items.

Whereas larger freight charges and passenger service demand supplied a lift, many sellers cited low money circulation, strict financing insurance policies and sluggish industries (like cement and coal) as main hurdles, Vigneshwars mentioned.

Tractor gross sales rose 5 per cent year-on-year to 93,381 items in January whereas three-wheeler retail gross sales rose 7 per cent to 1,07,033 items final month. FADA famous that using on the momentum of a promising begin to 2025, the auto retail sector enters February with cautious optimism.

Based on a modern survey, almost half of sellers (46 per cent) anticipate progress this month, whereas 43 per cent count on gross sales to remain flat and 11 per cent foresee a dip, the trade physique mentioned.

This mix of sentiments underscores the trade’s advanced panorama, the place vibrant spots are tempered by ongoing challenges, it acknowledged.

On the optimistic aspect, sellers report that the persevering with marriage season, recent product launches and strategic promotional actions are more likely to maintain buyer footfalls, it famous.

Moreover, improved stock administration, higher financing choices from choose lenders and backlogged orders in sure segments add to the sense of guarded confidence, it added.

With supportive insurance policies and a post-budget raise in client sentiment, many imagine February might see a secure or barely elevated gross sales curve, FADA mentioned.

On the identical time, shorter working days, pockets of weak rural liquidity and inflationary pressures stay areas of concern, probably limiting the extent of any upswing, it mentioned.

Strict lending standards, costlier autos and subdued demand in sure industrial sectors might weigh on general efficiency, FADA famous.