Indian automobile retail sales for September saw a substantial uptick, which jumped up by 20% over the same period in the previous year to 1.89 million units. According to data provided by the Federation of Automobile Dealers’ Associations (FADA), the sales increased as a result of a positive market sentiment fuelled by a favourable monsoon.
Sales of all other automobile categories increased significantly, with the exception of tractors, which saw a 10% decline. A significant 22% increase in two-wheelers, a 49% increase in three-wheelers, a steady 19% increase in passenger vehicles, and a 5% increase in commercial vehicles were all noted.
With 102,426 units sold in September, three-wheeler sales hit an all-time record, up from the 68,937 units sold in the same month last year. This surpassed the previous record set in August 2023, which stood at 99,907 units. The two-wheeler market saw growth during the period under review, going from 1.08 million units in 2017 to 1.31 million units this year.
Additionally, in September 2023, the commercial vehicle segments observed a noticeable demand in the coal, cement, and general market load sectors. The passenger carrier market saw an improvement as well.
According to FADA, this positive trend can be linked to the central government’s adequate deployment of funds for infrastructure development, which fostered a favourable environment for bulk deals, particularly in the tippers and government sectors. Sales of commercial vehicles grew during the month from 77,054 units last year to 80,804 units this year.
According to Mr. Manish Raj Singhania, President of FADA, “September’s auto retail celebrated a 20% year-on-year leap, continuing the momentum from the previous month while marking a 3.5% month-on-month increase.”
He added that the demand increased with the introduction of new models and attractive promotional offers, especially in rural areas. Furthermore, this increase in demand was accompanied by increased customer walk-ins and an overall positive market response.
The market witnessed increased vehicle availability and an infusion of new and updated models from various original equipment manufacturers (OEMs), which led to a stimulating revival of the passenger vehicle (PV) segment. This improvement was made possible by improved supplies and a wider range of products to meet the diversifying consumer demands. Compared to 279,137 units in September 2022, sales increased to 332,248 units.
