Auto Retail Sales Exhibit Robust Year-on-Year Growth Despite Short-Term Setbacks
- Posted on July 6, 2023
- News
- By Ishna
- 344 Views
In a promising sign for the automotive industry, auto retail sales in June showcased an impressive 10% year-on-year growth across all vehicle categories. From two-wheelers to commercial vehicles, each segment demonstrated positive performances with varying growth rates: two-wheelers at 7%, three-wheelers at a staggering 75%, passenger vehicles at 5%, tractors at 41%, and commercial vehicles at 0.5%.
However, despite this overall growth, the
sector experienced an 8% month-on-month dip, indicating a temporary
deceleration in sales.
Yet, the industry remains hopeful for a
much-needed boost from the upcoming festive season, set to kick off in late
August, which could drive sales and improve the outlook.
Maruti Suzuki India led the passenger vehicle
segment, capturing a significant market share of 41.09%. Hyundai Motor India
secured the second position with a 14.59% market share, closely followed by
Tata Motors at 13.47%.
Encouragingly, the commercial vehicle segment
exhibited a 1.5% growth compared to June 2019, indicating a recovery from the
pandemic's impact.
Manish Raj Singhania, President of the
Federation of Automobile Dealers Associations (FADA), highlighted the short-term
deceleration in sales despite the 10% year-on-year growth. He also emphasized
the growth rates of individual categories, with two-wheelers, three-wheelers,
passenger vehicles, tractors, and commercial vehicles observing growth rates of
7%, 75%, 5%, 41%, and 0.5%, respectively.
As the auto industry moves forward, challenges
lie ahead, such as continued supply constraints, economic pressures in the
two-wheeler market, and the impact of reduced FAME subsidies on electric
vehicle sales. However, the three-wheeler market remains confident in its
growth prospects, driven by favorable market responses and increasing demand.
