Auto retail sales in May rise 10% YoY: FADA

<p>The PV segment rebounded after a decline in the previous month, driven by improved availability, strong pending orders and robust demand for new launches, contributing to the segment's positive momentum.</p>
The PV segment rebounded after a decline in the previous month, driven by improved availability, strong pending orders and robust demand for new launches, contributing to the segment’s positive momentum.

New Delhi: Auto retail sales in May 2023 increased 10% YoY because of the positive performances across all vehicle categories including 2W, 3W, PV, Tractor and CV with respective growth rates of 9%, 79%, 4%, 10%, and 7%, according to the Federation of Automobile Dealers Association’s (FADA) vehicle retail data for the month released on Monday.

Despite a slight decline of -2% compared to pre-COVID levels, the overall retail figures relatively improved, except 2W sales (-8%) and CV sales (-7%) being the primary segments which experienced slight setbacks, the report said.

May showcased an increased penetration of EVs, accounting for 8% of total sales, with 2Ws contributing 7%, 3Ws 56%, CVs 0.5% and PVs 2.5%.

2W sales were positively influenced by the marriage season and the anticipated changes in FAME subsidies, set to be effective from June, which drove higher sales of electric 2Ws. The recovery of rural demand also indicated a promising outlook, suggesting the potential decline of COVID-19’s impact.

The PV segment rebounded after a decline in the previous month, driven by improved availability, strong pending orders and robust demand for new launches, contributing to the segment’s positive momentum.

CV sales experienced sustained growth, attributed to the government’s focus on infrastructure development, with the bus segment also displaying a notable increase due to improved financing options and higher sales to academic institutions.

All India Vehicle Retail Data for May’23

CATEGORY MAY’23 MAY’22 YoY % (2022)
2W 14,93,234 13,65,924 9.32%
3W 79,433 44,482 78.57%
E-RICKSHAW(P) 36,755 21,045 74.65%
E-RICKSHAW WITH CART (G) 3,210 1,826 75.79%
THREE WHEELER (GOODS) 8,104 6,390 26.82%
THREE WHEELER (PASSENGER) 31,297 15,179 106.19%
THREE WHEELER (PERSONAL) 67 42 59.52%
PV 2,98,873 2,86,523 4.31%
TRACTOR 70,739 64,528 9.63%
CV 77,135 71,964 7.19%
LCV 41,149 42,176 -2.44%
MCV 6,047 4,768 26.82%
HCV 26,399 22,927 15.14%
Others 3,540 2,093 69.14%
Total 20,19,414 18,33,421 10.14%

Source: Vahan

About the May 2023 performance, FADA President Manish Raj Singhania, said, “May has been an encouraging month for the auto retail industry, demonstrating a robust 10% YoY growth across all vehicle categories. We have witnessed a resurgence in the 2W, 3W, PV, Tractor, and CV segments with growth rates of 9%, 79%, 4%, 10%, and 7% respectively. While there has been a slight -2% decline compared to pre-COVID levels, the overall retail figures have shown improvement. The 2W and CV sales did continue to face some challenges, recording high single digit setbacks of -8% and -7% respectively.”

“Electric vehicles (EVs) made impressive strides this month, contributing to 8% of the total vehicle retail. This was buoyed by a surge in 2W EV sales that contributed 7% and 3W EV sales contributing a substantial 56% of their respective total sales. The CV and PV categories also marked their presence in the EV landscape, with respective contributions of 0.5% and 2.5%,” he added.

  • Published On Jun 5, 2023 at 09:44 AM IST

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