Cars on display at a Maruti Suzuki showroom in Gurugram. , Photo Credit: PTI
Retail sales of vehicles in India to grow by 16% to nearly 1.8 million units in February 2023, helped by strong demand during the wedding season, an industry body of automobile dealers said on March 6, 2023, adding that festival sales would boost sales. Can be extended in March, 2023.
Sales have picked up in the last two months as chip shortages eased and automakers launched new models to meet demand ahead of the festival and wedding season. However, rising interest rates amid elevated inflation are seen as a drag on sentiment, with overall sales in February 2023 still below pre-Covid levels.
The Federation of Automobile Dealers Associations (FADA) said in a statement that two-wheeler sales grew by 15%, while three-wheeler sales grew by 81%, passenger vehicles by 11%, tractors by 14% and commercial vehicles by 17%.
change in emission norms FADA said that from April 2023, which will see a rise in vehicle prices, and automakers introducing promotional offers in the last month of the financial year, should help boost sales in March 2023.
The industry body cited several festivals, including the two-day festival of colors – Holi, and regional New Year celebrations Ugadi and Gudi Padwa – for demand in March 2023.
FADA publishes retail sales data, while Society of Indian Automobile Manufacturers (SIAM), which usually releases data in the second week of the month, counts vehicles sold to dealers.
Auto sales numbers are keenly watched, as they are one of the key indicators for assessing private consumption and carry more than 50% weighting in calculating a country’s economic growth.
Meanwhile, the industry body has warned that predicting a return of El Nino weather conditions in the PacificWhich could mean a weaker monsoon in India and result in lower production and higher prices, a windfall for commercial vehicle sales.
TVS Motor Company and Hero MotoCorp, two of India’s top three listed bike makers, slashed domestic sales estimates in February 2023 as chip supply constraints eased.
FADA said that February 2023 saw strong demand in the three-wheeler segment after government subsidies crossed pre-pandemic levels for the first time.