Vehicle registrations see healthy double-digit growth in June amid sustained demand
Vehicle registrations — a proxy for retail sales — increased in healthy double-digits last month amid sustained consumer demand. According to data compiled by industry body Federation of Automobile Dealers’ Association (FADA), retail sales of automobiles went up by 9.57% to 1,863,868 units in June.
Vehicle registrations across categories including two-wheelers, three-wheelers, passenger vehicles, tractors and commercial vehicles rose by 7% (to 1,310,186 units), 75% (to 86,511 units), 5% (to 295,299 units), 41% (to 98,660 units) and 0.4% (to 73,212 units), respectively. FADA President Manish Raj Singhania said, “«Despite a 10% YoY growth, auto retail sector has seen an 8% MoM dip, indicating a short-term deceleration in sales…(However) India's growth narrative remains resilient.
The month of June’23 registered all-time highs for 3W, PV and tractor segments when compared to all the previous June’s.” Singhania informed when compared to pre-COVID levels, overall auto retail saw a marginal decrease of 3%, on account of slow sales in the two-wheeler segment. Conversely, the CV segment experienced a 1.5% growth compared to June'19, surpassing the pre-COVID levels for the first time.
In the month under review, two-wheeler sales were impacted due to supply constraints from certain OEMs and some softening in demand because of broader economic conditions and higher costs at the entry-level. “New model introductions, festive promotions and seasonal factors couldn't markedly boost sales.
A 12% MoM drop was observed in two-wheeler sales, with electric vehicle sales witnessing a 56% MoM decline, primarily due to the government reducing FAME subsidies, triggering extreme price hikes” Singhania added. Two-wheeler stocks in the network
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