Indian auto retail sector sustains 10% YoY growth in July, 3-Wheeler segment shines with 74% surge: FADA report

livemint.com:

all vehicle categories reported positive growth numbers during this period. Two-wheelers (2W) witnessed an eight per cent YoY increase, Three-Wheelers (3W) experienced a remarkable surge of 74 per cent, Passenger Vehicles (PV) showed a four per cent growth, Tractors (Trac) demonstrated a healthy 21 per cent expansion, and Commercial Vehicles (CV) held steady with a two per cent YoY growth. However, when analyzing the monthly performance, a mixed trend emerged.

While the year-on-year growth was consistent, there was a five per cent decline in retail sales on a month-on-month (MoM) basis, as per the report. Notably, the 3W segment stood out with a notable nine per cent MoM growth, but the 2W, PV, and Trac segments faced reductions of six per cent, four per cent, and eight per cent, respectively. CVs experienced a marginal dip of -0.2 per cent, closing almost flat.

In comparison to pre-COVID levels, overall retail sales registered a 13 per cent decline, indicating the lingering impact of the pandemic on the automotive sector. Specifically, the 2W segment struggled with a significant 23 per cent dip, while CVs also faced challenges with a four per cent contraction. One notable highlight was the impressive performance of the Three-Wheeler segment.

July witnessed an all-time high sale of 94,148 units, showcasing a remarkable 74 per cent YoY and nine per cent MoM growth, signaling a positive market sentiment in this category. The report also shed light on inventory levels for Passenger Vehicles, which have surpassed the 50-day mark and currently stand between 50-55 days. This indicates an inventory build-up in anticipation of the upcoming festive season when demand typically surges.