New Delhi, Jan 5 (KNN) Auto Retail for the month of December 2022 fell by 5% after two months of enthusiasm in the sector, said the monthly data released by Federation of Automobile Dealers Associations (FADA) on Thursday.

Due to inflation pressure, upcoming change in vehicle norms resulting in price hikes, FADA said that it remains cautious during the last quarter of FY’23.

The 2W category fell by 11% and all the other categories were in green with 3W, PV, Tractor and CV growing by 42%, 8%, 5% and 11% respectively.

When compared to pre-covid month of December 2019, total vehicle retail was down by 12%.

Commenting on how December 2022 and CY’22 performed, FADA President, Manish Raj Singhania said, “The month of December went into lull after 2 super months of October and November which witnessed adrenaline rush in the entire Auto Industry.”

In their ‘Near Term Outlook’, FADA has said global geopolitical headwinds, tightening monetary policy and the lingering effect of the pandemic has combined to create a gloomy global outlook.

“The RBI has also increased repo rate by 225 basis points since May’22. However, supported by domestic growth, India is projected to be one of the world’s fastest growing economies,” said FADA.  (KNN Bureau)