After witnessing a downtick in March, Passenger Vehicle (PV) retail sales again moved northwards during the first month of this financial year. As per the data shared by the Federation of Automobile Dealers Associations (FADA), PV retails went up by 16 percent to 3,35,123 units last month as compared to 2,89,056 units in the same month last year.
According to FADA president, the PV category experienced double-digit YoY growth, supported by enhanced model availability and favourable market sentiments, particularly around festive events like Navratri and Gudi Padwa.
“Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth. Additionally, the lack of new models in some portfolios impacted market traction,” said Singhania, in an official release.
Similarly, two-wheeler registrations increased 33 percent to 16,43,510 units in April as compared to 12,33,763 units in the same month last year. FADA attributed the growth to “improved supply” and the increasing demand for 125cc models.
“Positive market sentiments, bolstered by stable fuel prices, a favourable monsoon outlook, festive demand and the marriage season, contributed to this rise. New model launches also helped drive growth, despite some delays in supply,” added Singhania.
Commercial Vehicle (CV) retails witnessed a 2.31 percent increase to 90,707 units in April as against 90,707 units in the same month last year. Singhania believes that the CV segment, which saw 0.6 percent MoM decline, indicates “varied market conditions”.
In his view, “Positive momentum was found in bulk and corporate deals and school bus demand, though elections dampened sentiment, with customers delaying expansion plans. Limited finance options and regional challenges such as water scarcity further impacted performance.”
While three-wheeler sales rose 9 percent year-on-year to 80,105 units (73,310 units last year), tractor segment saw a growth of just 1 percent at 56,625 units in April (55,857 units last year), as per the auto retail body.
With every segment witnessing upward trends, the overall vehicle retail sales rose 27 percent year-on-year (YoY) to 22,06,070 units last month vis-a-vis 17,40,649 units in April 2023.
“While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant,” noted FADA President.
Meanwhile, FADA remains “cautiously optimistic” about its near-term outlook. ” It also stated that "election uncertainty" may have some negative impact on auto retails.
“While market opportunities exist with rising customer interest in new models, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively,” concluded Singhania.
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