Motown sees double-digit growth in 2023

Aided by robust demand, automobile retail sales in India rose by 11 per cent last year as compared to 2022, dealers' body FADA said on Monday.

The overall domestic automobile retail sales stood at 2,38,67,990 units in the 2023 calendar year as compared to 2,14,92,324 units in 2022.

Passenger vehicle sales stood at 38,60,268 units last year, up 11 per cent from 34,89,953 units in 2022.

Similarly, two-wheeler retails grew by 9 per cent last year to 1,70,61,112 units from 1,55,88,352 units in the January-December period of 2022.

Three-wheeler retail sales jumped 58 per cent to 10,80,653 units last year from 6,81,812 units in 2022.

Commercial vehicle retails saw an increase of 8 per cent at 9,94,330 units from 9,18,284 units in 2022.

Tractor retails rose to 8,71,627 units, registering a jump of 7 per cent from 8,13,923 units sold in the preceding year.

In December 2023, the overall domestic automobile retail sales increased by 21 per cent to 19,90,915 units as compared to 16,43,514 units in December 2022.

Passenger vehicle retails rose to 2,93,005 units last month, 3 per cent higher than  that of December 2022 when the figure stood at 2,85,429 units.

Two-wheeler sales rose by 28 per cent to 14,49,693 units in December 2023 as compared to 11,36,465 units sold in the year-ago period.

The Federation of Automobile Dealers Associations (FADA) stated that it has collated the sales data from 1,355 out of 1,442 regional transport offices across the country.

FADA noted that each sector within the auto retail industry is positioned for growth this year, navigating through the dynamic market conditions.

Passenger vehicles are expected to see growth with new product launches and stable market sentiments, it said.

The two-wheeler sector expects a boost from new model launches, especially in the first half of the year, and an overall better economic condition coupled with higher EV participation, the industry body said.

Improved customer sentiments, due to factors like lower fuel prices and crop payments to farmers, are likely to drive demand, it added.

Besides, the commercial vehicle segment is expected to grow on the back of increased government spending due to elections, infrastructural projects and demand in key industries like coal, cement, and iron ore.

The market is also expected to benefit from the replacement of older vehicles, FADA said.