Apex automotive dealer body Federation Of Automobile Dealers Associations (FADA) shared the industry’s sales performance for the financial year 2022-2023 with all segments posting growth over the previous financial year. Passenger vehicles (PV) had a strong showing through the fiscal year ending the years with sales of over 36 lakh units – the highest in a financial year. The previous high was reported in FY2019 at 32 lakh units. Two-wheeler sales while up as compared to FY2022 still failed to match up to pre-covid numbers with sales in FY2023 marking a seven-year low for the segment. Cumulative sales in the segment for FY2023 stood at 1,59,95,968 units.
“Retail sales of passenger vehicles reached a record high of 3.6 million vehicles, growing 23% YoY. The previous high was in FY'19 when retail sales were 3.2 million vehicles. The segment experienced numerous new launches and better product availability due to the easing of the semiconductor shortage during the year. The demand for higher-end variants helped sustain sales. However, the entry-level variant remains under pressure as customers in this category are still affected by high inflation,” commented Manish Raj Singhania, President, FADA on the sales of PVs in FY2023.
PVs reported cumulative sales of 36,20,039 units – up 23 per cent from 29.42.273 units in FY2022. In March 2023, PV sales stood at 3,35,266 units – up 14.4 per cent year-on-year. Sales were also up compared to February 2023, when the segment posted sales of 2,87,182 units.
Singhania attributed the strong showing to the improvement in supply chains along with multiple festivals during the month and impending price hikes. He however noted that inquiries for new cars were starting to dip.
Moving to the 2-wheeler segment, while FY2023 saw the segment reach a seven-year low, cumulative sales were up 18.5 per cent over FY2022. For the month of March, two-wheeler sales stood at 14,45,867 units – up 12.4 per cent year-on-year and up 30 per cent over February 2023. Singhania however noted that the segment’s performance was still 9 per cent as compared to pre-covid levels with demand for two-wheelers in rural markets adversely impacted due to inflation.
Sales of three-wheelers were up a notable 83.9 per cent in the financial year with 7,67,071 units sold in FY2023. Monthly sales for March were also up 68.7 per cent year-on-year at 86,857 units. FADA said that EV’s had gained a 52 per cent market penetration in the segment on the back of a strong up-take of e-rickshaws. The segment had also benefitted from the availability of finance, alternative fuels and state subsidies that had enabled it to grow.
Commercial vehicles meanwhile posted a 32.88 per cent growth in FY2023 rising to 9,39,741 units sold from 7,66,545 units in FY2022. For the month of March, the segment posted a 10.3 per cent year-on-year growth with 92,790 units sold. The strong performance came on the back of growing government investment in infrastructure projects as well as discounts offered by manufacturers.
Tractor sales were relatively subdued in comparison with a 8 per cent year-on-year growth reported in FY2023 and a 4 per cent growth in March 2023.
Commenting on the upcoming financial year, FADA said that the industry could see tapered single-digit growth during the coming fiscal. This would be owing to new automotive regulations coming into force along with the impact of price hikes and increasing inflation. The dealer body also warned that a possible El Nino effect could also hamper demand with poor rainfall leading to poor crop yield thus affecting rural markets.
