Total vehicle retail sales grew 14 pc in Jan 2023: FADA

According to FADA, passenger vehicles (PV) grew 21.92 per cent to 3,40,220 units in January 2023, against 2,79,050 during the same month in 2022 while commercial vehicle sales went up 16.34 per cent to 82,428 units from 70,853 units in the year-ago month.

The sales of two-wheelers surged 10 per cent to 12,65,069 units in January 2023 from 11,49,351 units in the corresponding month in 2022 whereas the sales of three-wheelers jumped 59 per cent to 65,796 units in January 2023, against 41,487 units in the year-ago period.

FADA President Manish Raj Singhania said, "January 2023 witnessed total retail rising by 14 per cent YoY (year-on-year) but was still down by 8 per cent, when compared to pre-Covid month of January 2020. All categories were in green with 2-Wheeler, 3-Wheeler, Passenger Vehicle, Tractor and Commercial Vehicles growing by 10 per cent, 59 per cent, 22 per cent, 8 per cent and 16 per cent, respectively, on YoY basis."

According to FADA, with China's factory activity once again gaining pace, global supplies of parts and semi-conductors will see a recovery thus aiding better vehicle supplies and lower waiting period in future. This will further fuel growth for the already healthy Passenger Vehicle category, it added.

The Economic Survey 2022-23 tabled in Parliament said that rural wages will rise at a steady positive rate as inflation is expected to soften thus translating into rise in real wages, FADA said. FADA said it was hopeful that this will have its rub-off effect with rise in two-wheeler sales going ahead.

"The two-wheeler category showed a growth of 10 per cent YoY... While sentiments are improving at a snail's pace and are better than what it was a year ago, the rural market is yet to fully come to the party as the cost of ownership has shot up significantly while disposable income has not increased in the same ratio," Manish Raj Singhania said.

FADA also added that the recent announcements in Budget 2023-24 will help aid the overall growth of automobile retails. The demand of entry-level two-wheelers and entry-level PV is likely to accelerate due to enhanced income tax rebate, Budget allocation for vehicle scrappage policy and import duty exemption for manufacturing lithium batteries thus reducing electric vehicle (EV) acquisition cost. (ANI)