Vehicle retail grows by 14% YoY in Jan 2023: FADA

New Delhi, Feb 6 (KNN) Total vehicle retail during January, 2023 increased by 14 per cent on YoY basis, said the Federation of Automobile Dealers Associations (FADA) on Monday. 

Releasing the Vehicle Retail Data for January, the report said all categories were in green with two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicles growing by 10%, 59%, 22%, 8% and 16% respectively.

Commenting on how January’23 performed, FADA President, Manish Raj Singhania said, “January witnessed total retail rising by 14% YoY but was still down by 8%, when compared to pre-covid month of January’20.”

While sentiments are improving at a snail’s pace and are better than what it was a year ago, rural market is yet to fully come to the party as cost of ownership has shot up significantly while disposable income has not increased in the same ratio.

In their near term outlook, FADA said that 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.

The recent announcements in Budget 2023-24 will help aid overall growth of Automobile Retails. 

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 EV acquisition cost. 

A reduction in surcharge at the highest IT slab will also benefit high end vehicle sales. 

Apart from this, the capital outlay of Rs 10 lakh crore for Infrastructure spending will help aid CV sales which is already witnessing an upswing.  (KNN Bureau)