New Delhi, April 8 (FN Agency) India’s auto retail witnessed robust growth in financial year 2023-24 with resurgence seen in the two-wheeler segment on the back of new model launches and sharp jump in electric vehicle (EV) segment, as per data released by trade body Federation of Automobile Dealers Associations (FADA) on Monday. “In FY’24, the Indian auto retail sector achieved a notable 10% year-on-year (YoY) growth, with the 2W (two-wheeler), 3W (three-wheeler), PV (passenger vehicles), Tractor and CV (commercial vehicle) segments registering growth rates of 9%, 49%, 8.45%, 8% and 5% respectively, setting record highs in the 3W, PV and Tractor categories,” FADA said.
As per All India Vehicle Retail Data released by Federation of Automobile Dealers Associations (FADA), total vehicle sales across all categories stood at 2,45,30,334 units in FY24 as compared to 2,22,41,361 units in FY23. Commenting on auto retail numbers for FY24, FADA President Manish Raj Singhania said that the 2W segment saw a 9% growth in FY24, driven by a rich mix of factors including enhanced model availability, new product introductions, and positive market sentiment, further augmented by special schemes and the rural market’s recovery from COVID. “The growth in EVs and strategic launches in premium segments also played a critical role, overcoming challenges such as supply constraints and heightened competition,” he said. On near-term auto sector outlook, FADA said that with a notable decline in consumer sentiment among urban Indians, as reported by the Centre for Monitoring Indian Economy (CMIE), the automotive sector faces a nuanced challenge.
“This downturn, characterized by a restraint in discretionary spending within urban income brackets, adds a layer of complexity to the industry’s landscape,” it said. Talking about the long-term outlook, the trade body said that the Indian auto industry is poised for growth in FY25 amidst a mix of optimism and challenges. “Market sentiment is cautiously optimistic, with the industry banking on improved customer engagement and financing schemes to boost sales. However, it faces challenges like high base in the PV segment and intense competition,” FADA said. It further added, “The focus is on overcoming these hurdles with innovation and strategic market engagement, aiming for a balanced growth across all the segments. As FY’25 unfolds, the Indian Auto Industry is navigating through evolving market demands and economic conditions, leveraging its strengths for sustainable growth and a wider reach.”