Ahead of the festive season, automobile retail sales picked up momentum, registering 8.84% growth on year-on-year basis to 1,10,79,116 units in the first half of FY24 on the back of an increase in demand, according to the latest data from the Federation of Automobile Dealers Association (FADA). In contrast to this, the automobile retail sales in the H1 of FY23 stood at 1,01,79,072 units.
However, the two-wheeler segment continues to reel under stress with retail sales growing marginally by 7.03% to 78,28,015 units during the period under review against 73,13,930 units in the same period last year. "The 2W segment is under stress, still far from its H1 FY'19 peak of 97,27,200 units, reflecting the diverse challenges and successes within India’s auto retail sector," says Manish Raj Singhania, President, FADA.
Meanwhile, the retail sales in the passenger vehicle segment grew 6.19% to 18,08,311 units during the period under review against 17,02,905 units in the same period last year, marking the market's positive response to the diverse and dynamic offerings in the segment, says Singhania.
"As fiscal year 2024 unfolded, the auto retail sector in India embarked on a journey of cautious optimism and resilience amidst a mix of obstacles and victories across various vehicle categories. The initial modest 4% decline in April's overall vehicle retails was not only a reflection of the dynamic nature of the automotive market but also a precursor to a story of gradual recovery and growth that would unfold over the subsequent months, culminating in a robust 20% YoY growth in September,” says Singhania.
The retail sales in the three-wheeler segment grew to a record 5,33,353 units in the April to September period this year, registering an uptick of 65.66%, against 3,21,964 units in the same period last year. "This extraordinary performance in the 3W category underscores the sector's vigorous recovery and adaptability in navigating through the complex market challenges presented by the ongoing pandemic," says Singhania.
The retail sales in the commercial vehicle segment also witnessed a positive growth of 3.25% to 4,65,097 units in the H1 of FY24 against 4,50,458 units in the corresponding period of the previous year. This is the second record-highest sales from its peak of 4,72,492 units, which the segment registered in the H1 of FY19.
Notably, despite a slowdown last month, the tractor retail sales grew 13.99% to a record 4,44,340 units in H1 of FY24 against 3,89,815 units in the same period last year. For the coming months, FADA anticipates a season of growth and prosperity for the auto retail sector, moving from cautious optimism to a hopeful and positive outlook for the market.