Two-wheeler segment grows 2.5% despite supply constraints while PVs see a decline in May 2024 sales

financialexpress.com:

The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for May 2024. According to the data, the Indian Auto Retail sector achieved a 2.61% YoY growth in May 2024, owing to positive rural demand due to expected good monsoon and improved finance availability kept the counters ticking.

FADA President, Manish Raj Singhania, commented on May 2024’s auto retail performance, stating, “In May 2024, the Indian Auto Retail sector achieved a modest 2.61% YoY growth. The two-wheeler (2W), three-wheeler (3W) and commercial vehicle (CV) segments grew by 2.5%, 20% and 4% while passenger vehicle (PV) and tractor (Trac) were in red by 1% each YoY.

The two-wheeler segment grew by 2.5% YoY but declined by 6.6% MoM. Dealers reported supply constraints, lack of OEM marketing activities and impacts from extremely hot weather and elections. Positive rural demand due to expected good monsoon and improved finance availability were also noted which kept the counters ticking.

The PV segment showed -1% YoY and a -9.5% MoM decline. Dealers cited the impact of elections, extreme heat and market liquidity issues as major factors. Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by OEMs affected sales.

Additionally, increased customer postponements and low enquiries further contributed to the challenging market conditions. Due to the extreme heat, the number of walk-ins to showrooms dropped by around 18%.

The CV segment showed a 4% YoY growth but an -8% MoM decline. Dealers reported that elections and extreme climatic conditions heavily impacted sales. Despite growth due to a low base from last year and increased bus orders, the