Auto sales in June rise by 10%: FADA

New Delhi, July 6 (KNN) Automobile retail sales in June registered a 10% year-on-year growth, with positive performances seen across all vehicle categories, as per Federation of Automobile Dealers Associations of India (FADA).

The apex automobile retail body released its monthly sales data on Thursday which showed that two-wheelers, three-wheelers, passenger vehicles, tractors and commercial vehicles sales grew 7%, 75%, 5%, 41%, and 0.5%.

While the 18,63,868 units sold across five vehicle segments – two- and three-wheelers, passenger vehicles, commercial vehicles and tractors – constitute 9.57% year-on-year growth (June 2022: 17,01,105 units), month-on-month retails are down 7.7% (May 2023: 20,19,414 units) as depicted in the sales data table below.  

June 2023 retails, which are a shade above January 2023’s 18,26,669 units, reflect the slow growth of the two-wheeler segment which have dragged overall numbers. 

At 11.25 million units (1,12,52,157 units), cumulative sales for the first six months of this year are up 9.62% over January-June 2022 sales of 1,02,64,461 units. 

India Auto Inc retails had surpassed the 2 million-mark in two months of the year to date – March 2023 (20,41,847 units) and May 2023 (20,19,414 units). In CY2022, total vehicle retails were 2,11,20,441 units, which means halfway into CY2023, cumulative retails are 53% of all of last year. 
  
As per FADA, despite a marginal decline of -3% compared to pre-Covid levels, the overall retail figures have relatively improved barring two-wheelers (-14%). 

Importantly, the critical CV sector has grown out of the shadow of Covid, improving its performance by 1.5% when compared to June 2019 sales.

The two-wheeler segment, the largest in terms of volumes and best when it comes to affordability. This vehicle category is in the black with retails of 1.3 million units in June and up 6.77%. 

The numbers could have been slightly better and according to FADA president Manish Raj Singhania, the sector “wrestled with supply constraints from certain OEMs and a softer demand attributed to economic conditions and higher entry-level bike costs. New model introductions, festive promotions and seasonal factors couldn't markedly boost sales.”

When compared to May 2023’s 14,93,234 units, June sales were down 12.25%. Put this down also to the fact that sales of electric two-wheelers slumped by 56% in June when compared to May 2023’s record sales, mainly as a result of the slashed FAME subsidy and resultant higher EV prices. (KNN Bureau)