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India's Auto Retail Market Records Double Digit Growth In January 2024

Updated: Feb 13, 2024 04:18:54pm

India's Auto Retail Market Records Double Digit Growth In January 2024

New Delhi, Feb 13 (KNN) India’s auto retail market witnessed a remarkable expansion in January 2024, with significant growth across all vehicle categories, as per the latest data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday.

The overall market saw a commendable 15 per cent increase in activity, led by a noteworthy 15 per cent surge in two-wheelers.

Following closely behind were three-wheelers with an impressive 37 per cent growth, passenger vehicles at 13 per cent, tractors (Trac) at 21 per cent, and commercial vehicles at a modest 0.1 per cent uptick.

The demand for two-wheelers remained steady, particularly in rural markets, buoyed by the government's positive crop production estimates.

Improved vehicle availability, new model introductions, and a shift towards premium options all contributed to the increased demand.

Notably, the interest in electric vehicles is on the rise, constituting an evolving preference within this segment.

In the passenger vehicle segment, January set a new all-time high with 393,250 vehicles sold, marking a 13 per cent year-on-year growth and surpassing the previous record set in November 2023.

However, concerns persist over high inventory levels, which hover in the 50-55-day range, posing challenges for auto dealers.

The three-wheeler sector exhibited a mixed landscape, with growth and optimism prevailing in the commercial segment.

However, intensified competition from electric models, now representing 55 per cent of the market, underscores a significant market shift.

January 2024 presented a complex scenario for the commercial vehicles segment, with limited year-on-year growth.

While infrastructure development and positive crop yields fuelled certain market segments, challenges such as extreme weather, liquidity constraints, and high vehicle costs hindered overall growth.

Looking forward to February, FADA anticipates continued consumer spending momentum driven by the ongoing marriage season and agricultural sales, along with new product launches.

Post-Union Budget policies are expected to further stimulate growth, particularly within infrastructure-related industries.

Nonetheless, challenges including market uncertainty, supply constraints, and financial liquidity issues remain significant concerns.

(KNN Bureau)


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