Dealers’ body reports 3% growth in first quarter sales of cars and two-wheelers

Car sales in India have shown a slowdown with just a three percent growth in June this year, according to the Federation of Automobile Dealers Associations (FADA). Overall retail sales in the automobile sector have risen to 61,91,225 units in the April-June period from 56,59,060 units in the same quarter of the previous fiscal year.

Passenger vehicle retails increased by 2.53 percent to 9,20,047 units as compared to the previous year. Despite strong bookings and customer flow, FADA President Manish Raj Singhania stated that high competition, excess supply, and discounting have posed challenges for sustained growth in the passenger vehicle segment. Dealers have reported significant impacts from factors such as elections, extreme heat, and market liquidity issues, affecting showroom walk-ins and inventory levels.

Two-wheeler retails saw an increase to 45,54,255 units in April-June, up 12.56 percent from the previous year. Singhania noted that the recovery in the two-wheeler segment is promising, particularly in rural areas, despite facing challenges from extreme heat and the election period.

Commercial vehicle retail sales witnessed a marginal increase, while tractor retail sales declined by 12.44 percent. Singhania highlighted various challenges faced by the commercial vehicle segment, such as election-related sentiment dampening and limited financing options.

FADA remains committed to advocating for prudent inventory control, improved financing options, and strategic planning to ensure resilience and sustained growth in the auto retail sector. FADA represents over 15,000 automobile dealerships with over 30,000 sales outlets nationwide.