Three-wheeler Retail Sales Fuel Auto Sector's Growth: FADA The total auto retail sales registered a 9 per cent growth YoY fuelled by three-wheeler and passenger vehicles sales, however, the two-wheeler segment is under stress compared to its FY 19 numbers
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The three-wheeler segment witnessed a 66 per cent year-on-year growth in retail, registering unparalleled sales figures in the April-September period of this fiscal. The total auto retail sales registered a 9 per cent growth YoY fuelled by three-wheeler and passenger vehicles record sales, however, the two-wheeler segment is under stress compared to its FY 19 numbers.
All categories showed YoY growth with 2W, 3W, CV, PV and Trac growing by 7 per cent, 66 per cent, 3 per cent, 6 per cent and 14 per cent respectively.
"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 per cent 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 per cent YoY growth in September," said, Manish Raj Singhania, FADA President.
The first half of FY'24 saw the three-wheeler segment retailing a record-breaking 5,33,353 units, significantly outperforming the H1 FY'19 figures of 3,58,187. This underscores the sector's recovery and adaptability in navigating through the complex market challenges.
The PV segment, while having its set of challenges, also showcased a narrative of steady resurgence and growth. It not only grew by 6 per cent YoY but also witnessed record retails, with H1 FY'24 seeing an all-time high in PV retails at 18,08,311, surpassing the previous record set in H1 FY'23 at 17,02,905. This growth trajectory of the PV segment for two consecutive fiscal years is a testament to the resilient demand and the market's positive response to the diverse and dynamic offerings in the segment.
Despite a slowdown in the last month, Tractor sales have not been left behind, the first half of FY'24 witnessed record-breaking retails of 4,44,340 units, reflecting a substantial 20 per cent YoY growth. This performance not only indicates a strong market demand but also surpasses the sales figures of H1 FY'23, which stood at 3,89,815. The CV sector experienced robust sales, registering 4,65,097 units, only second to its record in H1 FY'19 with 4,72,492 units. However, the two-wheeler segment is under stress, still far from its H1 FY'19 peak of 97,27,200 units.
"With the festive season on the horizon, bringing with it a promise of renewed consumer interest and potential demand surge, 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," the president added.