New Delhi, India – The Federation of Automobile Dealers Associations (FADA) has released the retail sales figures for the first quarter of FY2024-25, showcasing a robust growth in the Indian auto retail sector. According to FADA President Manish Raj Singhania, the sector achieved an impressive overall year-on-year (YoY) growth of 9.40%.
The two-wheeler (2W) segment led the surge with a remarkable 12.56% YoY increase, while the three-wheeler (3W) segment followed closely with an 11.36% rise. The passenger vehicle (PV) segment saw a modest growth of 2.53%, and the commercial vehicle (CV) segment inched up by 0.7%. However, the tractor (Trac) segment experienced a decline of 12.44%.
Singhania highlighted the impact of the monsoon’s delayed progress in critical states, which exacerbated an intense heatwave in northwest India. This delay in rainfall affected the sowing operations of kharif crops, which in turn, hampered rural sales. Despite these challenges, the 2W segment showed promising recovery, particularly in rural areas, though walk-ins reduced by 13% in May and June due to the heat and election period.
The 3W segment continued to perform well, driven by increased electrification. Conversely, the CV segment faced a slowdown, attributed to the electoral period and halted infrastructure projects. Limited financing options and regional challenges, such as water scarcity, further impeded growth.
The PV segment, despite being at an all-time high, struggled to maintain its growth momentum. Anticipated growth for the fiscal year remains below 5%, affected by high competition, excess supply, and market discounting. Showroom walk-ins dropped by 18% in May due to extreme heat, and inventory levels soared to a record high by the end of June. Even with improved product availability and substantial discounts, market sentiment was dampened by the extreme heat and delayed monsoons, leading to 15% fewer walk-ins.
FADA continues to advocate for prudent inventory control, enhanced financing options, and strategic planning to ensure the resilience and sustained growth of the auto retail sector. The association is focused on elevating customer experience and revitalizing dealer synergy to transform the future of auto retail in India.
Q1 FY2024-25 Retail Figures:
- Two-Wheelers (2W): 4,554,255
- Three-Wheelers (3W): 272,691
- Commercial Vehicles (CV): 246,513
- Passenger Vehicles (PV): 920,047
- Tractors (Trac): 197,719
- Total: 6,191,225
