Automobile retail sales in India up by 10% in July due to car demand
According to the industry association FADA, automobile retail sales in India increased 10% year on year in July, owing to strong sales of passenger cars, two-wheelers, and commercial vehicles.
Total retail sales in all categories increased to 17,70,181 units this month, up from 16,09,217 units in July 2022.
According to the Federation of Automobile Dealers Associations (FADA), passenger car sales increased 4% last month to 2,84,064 units, up from 2,73,055 units the previous year.
"With the introduction of new products, the month saw an increase in orders and timely OEM supplies." However, heavy monsoons and flood-like conditions, particularly in North India, hampered sales," said FADA President Manish Raj Singhania.
SUVs remained a popular choice for purchasers, he noted.
In July, two-wheeler retail sales increased by 8% to 12,28,139 units, compared to 11,35,566 units in the same month the previous year.
Despite obstacles like severe monsoons and a shift towards EVs, the two-wheeler market has shown resilience, according to Singhania, with growing demand and trust in recognized brands.
Commercial vehicle retail sales increased by 2% yearly to 73,065 units in July 2022, up from 71,619 units in July 2022.
"The dynamics of the CV segment were mixed." "Despite robust stock availability and growth in areas such as school buses, erratic weather and high vehicle costs impacted demand," Singhania added.
Last month, three-wheeler sales increased by 74% yearly, while tractor sales increased by 21%.
FADA, representing over 15,000 vehicle dealers, remained apprehensive about future business prospects.
"While caution remains the operative word in the short term, FADA is optimistic about retail growth prospects, particularly with the holiday season approaching," it stated.
According to FADA, the entry-level category in the two-wheeler industry remains a source of worry.
It noted concerns in the CV industry about accelerated loan disbursements for purchasers.
Furthermore, inventory in PV has surpassed the 50-day mark in preparation for the approaching festival season, and the slowdown in the entry-level automobile vertical continues, according to FADA.
"A bigger worry is the IMD's prediction of below-average rainfall in August, which could lead to lower crop yields." This might impact buying power, particularly in rural areas," it noted.