Passenger vehicle retail sales rise 19% to 3,32,248 units in September

On a year-on-year (YoY) basis, sales were up 2.4 percent from 3,55,353 units sold in September 2022.

The Indian passenger vehicle (PV) segment saw a 19 percent growth in retail sales in September 2023, according to the Federation of Automobile Dealers Associations (FADA).  Auto dealers sold 3,32,248 units of PVs last month, as against 2,79,137 units in September 2022. The increase in sales is attributed to the onset of the festive season, record SUV sales, new launches, rising production levels, and robust economic growth.

Commenting on  the numbers, FADA president Manish Raj Singhania said, “The PV category experienced a resurgence due to improved vehicle availability and an influx of new and refreshed models from various OEMs.”

It was reported recently that PV wholesales in India reached record highs in September, as the monthly dispatches by carmakers during that month crossed the 3,63,733 units. On a year-on-year (YoY) basis, sales were up 2.4 percent from 3,55,353 units sold in September 2022.

“The market showed consistent demand for luxury cars and SUVs, signifying a robust consumer appetite for premium segments. The segment also witnessed the benefit of good pending bookings and the launch of promising products, laying the groundwork for potential growth in the upcoming festive season,” added Singhania.

Automobile retail sales surged over 20 per cent in September as demand soared across vehicle segments with the onset of festival season.  Total automobile registrations across categories went up to 18,82,071 units last month from 15,63,735 units in September 2022, as per FADA.

“September's Auto Retail celebrated a 20 percent YoY leap, continuing the momentum from the previous month while marking a 3.5 percent MoM increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days,” added FADA President.

Two-wheeler retail sales grew by 22 per cent to 13,12,101 units, last month as against 10,78,286 units in September 2022.

“The 2W segment witnessed positive shifts as the festive season approaches. With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments. This uptick in demand was accompanied by heightened customer walk-ins and an overall positive market response. Additionally, better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season, “Singhania further added.

Commercial vehicle registrations increased by 5 percent YoY to 80,804 units last month. Three-wheeler sales saw an increase of 49 percent to 1,02,426 units last month, as against 68,937 units in September 2022.

“Sept’23 showcased a resilient CV segment, observing a noticeable demand in coal, cement and general market load sectors, with the passenger carrier segment also experiencing a favourable uptick. This positive trend can be attributed to the adequate deployment of funds from the Central Government towards Infrastructure development, which fostered an environment for bulk deals, especially in tippers and government sectors. Furthermore, there was a discernible improvement in market sentiment post-Covid, supporting a healthy traction in HCVs, Buses and LCVs and signalling a revitalized tourism market,” as stated by FADA President

Tractor retail sales, however, declined 10 per cent last month, as compared to the same month last year, he noted.  FADA revealed that total tractor sales declined to 54,492 units, as compared to 60,321 units last September.

On sales outlook, Singhania noted: "As we move past the Shraadh period on October 14, the market is poised for the onset of Navratri, heralding a 42-day festive window. With these promising indicators, FADA adopts an optimistic stance, anticipating a thriving festive season for the auto retail sector."

FADA revealed that it collated retail data last month from 1,352 out of 1,440 RTOs across the country.