Auto retail sales rise 7% in January; PV segment up 16%: FADA

Automobile retail income successful India roseate 7 per cent year-on-year successful January astatine 22,91,621 units, driven by robust request crossed segments, dealer's assemblage FADA said connected Thursday. Overall retail income stood astatine 21,49,117 units successful January 2024.

"Our observations bespeak that each conveyance class --2W, 3W, PV, tractor and CV-- witnessed affirmative momentum, pointing toward sustained user assurance and dependable marketplace recovery," the Federation of Automobile Dealers Associations (FADA) President C S Vigneshwar said successful a statement.

Passenger conveyance retail income jumped 16 per cent year-on-year to 4,65,920 units past month. Many dealers noted improved request but besides pointed to past year's dense discounting, which helped wide older models and displacement registrations, Vigneshwar said.

Inventory levels person improved, dropping by astir 5 days to 50-55 days, suggesting improved supply-demand balance, helium added.

Two-wheeler retails stood astatine 15,25,862 units past month, an summation of 4 per cent, arsenic compared with 14,65,039 units successful aforesaid period past year.

Sales successful municipality areas outpaced agrarian connected a Y-o-Y basis, increasing by 5 per cent compared to 4 per cent.

Dealers mention caller exemplary launches, matrimony play request and improved financing arsenic cardinal maturation drivers, Vigneshwar stated. However, concerns astir rising involvement rates, agrarian liquidity challenges and marketplace uncertainty inactive linger, helium added.

Commercial conveyance income roseate 8 per cent year-on-year successful January to 99,425 units.

While higher freight rates and rider bearer request provided a boost, galore dealers cited debased currency flow, strict financing policies and sluggish industries (like cement and coal) arsenic large hurdles, Vigneshwars said.

Tractor income roseate 5 per cent year-on-year to 93,381 units successful January portion three-wheeler retail income roseate 7 per cent to 1,07,033 units past month.
FADA noted that riding connected the momentum of a promising commencement to 2025, the car retail assemblage enters February with cautious optimism.

According to a latest survey, astir fractional of dealers (46 per cent) expect maturation this month, portion 43 per cent expect income to enactment level and 11 per cent foresee a dip, the manufacture assemblage said.

This blend of sentiments underscores the industry's analyzable landscape, wherever agleam spots are tempered by ongoing challenges, it stated. On the affirmative side, dealers study that the continuing matrimony season, caller merchandise launches and strategical promotional activities are apt to prolong lawsuit footfalls, it noted.

Furthermore, improved inventory management, amended financing options from prime lenders and backlogged orders successful definite segments adhd to the consciousness of guarded confidence, it added.

With supportive policies and a post-budget assistance successful user sentiment, galore judge February could spot a unchangeable oregon somewhat elevated income curve, FADA said.

At the aforesaid time, shorter moving days, pockets of anemic agrarian liquidity and inflationary pressures stay areas of concern, perchance limiting the grade of immoderate upswing, it said.

Strict lending criteria, costlier vehicles and subdued request successful definite concern sectors could measurement connected wide performance, FADA noted.