Total Vehicle Retail Sales For January Up By 14% The two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicle grew by 10 per cent, 59 per cent, 22 per cent, 8 per cent and 16 per cent respectively
By Shrabona Ghosh •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Federation of automobile dealers association (FADA) has released vehicle retail data for January 2023. According to the data, the total vehicle retail sales for January, grew by 14 per cent on a year-on-year (YoY) basis. The sales of two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicles increased by 10 per cent, 59 per cent, 8 per cent and 16 per cent, respectively.
"January 2023 witnessed total retail sales rising by 14 per cent YoY but was down by 8 per cent when compared to pre-covid month of January 2020. All categories were in green with two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicle growing by 10 per cent, 59 per cent, 22 per cent, 8 per cent and 16 per cent respectively on YoY basis," said Manish Raj Singhania, FADA president.
The two-wheeler category showed a growth of 10 per cent YoY but when compared to 2021 and pre-covid month of January 2020, it fell by 7 per cent and 13 per cent. The three-wheeler segment has seen 60 per cent growth YoY, 101 per cent growth when compared to 2021 and is now down by 3 per cent when compared to pre-pandemic levels of January 2020. EV fame-2 subsidy along with demand from commercial 3W space is fuelling healthy growth. The passenger vehicle segment continues to perform well with a growth of 22 per cent YoY. It has grown 10 per cent from January 2021 and 8 per cent from pre-covid month of January 2020.
The commercial vehicle category has also shown robust growth of 16 per cent YoY, 23 per cent from January 2021 and 6 per cent from pre-covid month of January 2020.
While sentiments are improving at a snail's pace, the rural market is yet to fully come to the party as cost of ownership has shot up significantly while disposable income has not increased in the same ratio. "Continued demand in the market due to replacement of fleet, growth in freight availability and government's consistent push for infrastructure projects has helped the CV segment rise above pre-covid numbers."
With China's factory activity once again gaining pace, global supplies of parts and semiconductors will see a recovery, aiding better vehicle supplies and lower waiting period in future. This will further fuel growth for the already healthy passenger vehicle category.
The economic survey 2022-23 tabled in parliament said rural wages will rise at a steady positive rate as inflation is expected to soften thus translating into rise in real wages. "We are hopeful that this will have its rub-off effect with a rise in two-wheeler sales going ahead," added the president.
