Vehicle registrations increase by 13% to two million units in February, according to FADA
Vehicle registrations — a proxy for retail sales — increased in healthy double-digits by 13% to over two million units last month amid better supplies and sustained consumer demand across rural and urban markets.
As many as 2,029,541 vehicles were sold last month, which is an increase of 13% over 1,794,866 units sold in February 2022, as per data collated by FADA (Federation of Automobile Dealers Association).
FADA President Manish Raj Singhania said vehicle retails increased across categories. While sales of two-wheelers went up by 13.25% to 1,439,523 units in the month under consideration, those of three-wheelers rose 23.88% to 94,918 units. “The 2W market's 13% YoY growth was driven by the rural sector, premium model demand, and strong entry-level segment performance, with broader product availability and compelling offers enhancing product acceptance. Factors like favourable marriage dates and improved economic conditions also contributed to this positive growth”, Singhania informed.
In the passenger vehicle segment too, sales grew by 12.36% to 330,107 units last month — a record for the month of February. However, high inventory levels ranging between 50-55 days remains a cause of concern for retailers. Singhania said the growth in sales in the passenger vehicle segment was driven by the strategic introduction of new products and enhanced vehicle availability. “While the sector benefits from favourable customer sentiment and the successful introduction of models in high demand, the persistently elevated
