Automobile Retail Sales Revs Up With 9% Growth In August: FADA

New Delhi, Sept 5 (KNN) India’s retail sales of automobile in August jumped by 9%, Federation of Automobile Dealers Associations (FADA) said on Tuesday.

The growth has been aided by sales growth in all segments, including passenger vehicles and two wheelers, as per the dealers’ body.

The total retail sales across segments rose to 18,18,647 units last month, up 9%, from 16,74,162 units in August 2022.

Passenger vehicle registrations increased by 7% to 3,15,153 units last month from 2,95,842 units in August 2022.

“In the passenger vehicle segment, improved vehicle supply, bolstered by expanded customer schemes, has maintained positive market dynamics,” FADA President Manish Raj Singhania said in a statement.

Similarly, two-wheeler sales saw a jump of 6% to 12,54,444 units as compared with 11,80,230 units in the same month last year.

“Despite positive growth, consumer sentiment remained ambivalent, impacting conversion rates and intensifying competition among key players,” Singhania noted.

Commercial vehicle registrations increased by 3% to 75,294 units last month from 72,940 units in the same month last year.

Tractor sales jumped 14% to 73,849 units in August as against 65,018 units in the year-ago period.

Three-wheeler retail sales saw a jump of 66% to 99,907 units in August from 60,132 units in August 2022.

“As the Indian automobile industry enters September, the outlook remains cautiously optimistic, shaped by a multitude of factors that vary across vehicle segments,” Singhania said.

The onset of the festive season, beginning with Onam, has uplifted market mood, improved liquidity and eased earlier bottlenecks in the supply chain across all categories, he added.

Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand, Singhania stated.  (KNN Bureau)