MC Markets Graphixstory: Among autos, three-wheelers lead growth race by a mile

Electronic three wheelers are becoming favourite of auto buyers.

Most auto categories saw double digit year-on-year (YoY) growth in 2023 but it were the three-wheelers that zipped ahead, riding on higher electric vehicle (EV) sales.

The Federation of Automobile Dealers Associations (FADA) said 2023 ended with double-digit growth, as total retail sales were up 11 percent from the previous year. All categories of vehicles recorded higher sales, with two-wheelers, three-wheelers, passenger vehicles (PVs), tractors and commercial vehicles (CVs) growing by 9.5 percent, 58.5 percent, 11 percent, 7 percent and 8 percent, respectively, from the previous year.

FADA is the apex national body of the automotive retail industry in India.

Passenger e-rickshaw sales for the year, as reported by FADA, came in at 4,74,276 vehicles against 3,06,239 units in 2022. E-rickshaw with cart, which is used to ferry goods, were also in demand and saw sales of 35,202 units against 21,900 in the previous year.

Outlook for 2024 is also positive.

“Buoyed by the rebound in consumer sentiment, as indicated by the December 2023 CMIE Index, the forecast for CY24 in the auto retail sector is positive. Strategic supply and inventory management are emphasised as critical for leveraging the upcoming trends,” FADA said.