Apex automobile dealer body Federation Of Automobile Dealers Associations (FADA) revealed that the auto industry posted a 16 per cent year-on-year (YoY) growth in sales in February 2023. All major segments – PV, CV, two-wheeler and three-wheeler - posted double digit-year-on-year growth over 2022 though two-wheeler sales continued to remain below pre-pandemic levels. Cumulative industry sales stood at 17,75,424 units in February 2023 as against 15,31,196 units a year ago.
Commenting on how February’23 performed, FADA President, Mr. Manish Raj Singhania said,
“February’23 continued to witness double-digit growth of 16% YoY but was still down by -8%, when compared to pre-covid month of February’20. All categories also witnessed double-digit growth with 2-Wheeler, 3-Wheeler, Passenger Vehicle, Tractor and Commercial Vehicles growing by 15%, 81%, 11%, 14% and 17% respectively on YoY basis.”
Two-wheeler sales grew 15 per cent from 11,04,309 units in February 2022 to 12,67,233 units last month. FADA attributed the growth to the upcoming implementation of the RDE emission norms as well as the ongoing marriage season. However, while sales were in the positive compared to last year, numbers still remained below pre-pandemic levels. The dealer body said that sales were down by 14 per cent as compared to February 2020.
Passenger vehicle sales meanwhile continued their strong push with a 11 per cent YoY growth. Sales for the month stood at 2,87,182 units – up from 2,58,736 units in the same month last year.
“The Passenger Vehicle segment saw a growth of 11% YoY and 16% when compared to pre-covid month of February’20. Launch of new models, continuously improving supply coupled with a healthy booking-to-cancellation ratio and wedding bells kept the momentum going for this already well-to-do segment,” Singhania said.
Three-wheeler sales too continued their upward push with a 81.47 per cent growth over February 2022. E-rickshaw and passenger three-wheeler sales were the primary growth drivers in the segment both posting growths of 88.64 per cent and 99.05 per cent respectively. Sales were also up compared to pre-pandemic 2020 by 3 per cent. FADA said that the growth came on the back of government subsidies, good scheme promotions by states along with aggressive financing schemes.
The commercial vehicles segment meanwhile grew by almost 17 per cent year-on-year though numbers were down 10 per cent over 2020. Total CV sales for the month stood at 79,027 units, up from 67,391 units.
Commenting on the segment’s performance, Singhania said,” Walk-in enquiries improved during the month. Apart from this, demand has also increased due to changes in OBD norms which will see price hikes. On the Government’s side, infrastructure spending has been healthy. This is also aiding better sales.”
Tractor sales for the month stood at 68,988 units – up 14 per cent over February 2022.
FADA expected the upcoming festivals in the month of March to help drive sales along with factors such as impending price hikes and better availability of vehicles also playing a factor. The body however said that India’s chief economic advisor forecasted that post-pandemic demand could fade in the near term as inflationary pressure has started affecting households. Additionally expected El Nino conditions during the summer could also have an effect on demand with weaker monsoons likely to affect the agriculture sector reducing output and increasing prices.
