The overall vehicle retails in H1FY24 saw a rise of 8.84 per cent YoY with two-wheelers, commercial vehicles and passenger vehicles posting growth of 7.03 per cent, 3.25 per cent and 6.19 per cent each.
“The initial modest 4% decline in April’s overall vehicle retails was not only a reflection of the dynamic nature of the automotive market but also a precursor to a story of gradual recovery and growth that would unfold over the subsequent months, culminating in a robust 20% YoY growth in September,” said Manish Raj Singhania, President, FADA.
“With the festive season on the horizon, bringing with it a promise of renewed consumer interest and potential demand surge, the FADA anticipates a season of growth and prosperity for the auto retail sector, moving from cautious optimism to a hopeful and positive outlook for the market,” Singhania said.
Tractor retails in the first half of FY24 witnessed an annual increase of 14 per cent, with retails of 4.44 lakh units. Tractors saw a slowdown in the last month but posted record-high sales in H1FY24. This may bode for a positive reading owing to worries about India’s rural economy. Rural India, which forms nearly two-thirds of the country’s population, accounts for 55% of the total two-wheeler sales and a bulk of its tractor purchases.
FADA earlier pointed to retail sales of two-wheelers crossing pre-pandemic levels in September as “potentially marking the beginning of a turnaround in rural markets.”Tractor purchases fell 10 per cent in September, as per FADA data, and have been mostly flat or lower since the start of fiscal 2024.In September, overall automobile registrations rose to 18.82 lakh units from 15.63 lakh units in the same month a year before.