Indian Auto Sales 2023
In a dramatic twist to the automotive landscape, India Auto Sales witnessed a 21% surge in retail auto sales in December 2023, reaching 1,990,915 units, as reported by the Federation of Automobile Dealers Associations (Fada). This spike, while celebratory in its own right, comes with a side note of caution as it reflects a 30.25% decline compared to the high of 2,854,242 units recorded just the month before in November.
The year 2023 painted a mixed picture for India Auto Sales. On one hand, there’s an 11% growth in retail sales, totaling 23,867,990 units, compared to the 21,492,324 units in 2022. On the other hand, December’s downturn rings alarm bells for India Auto Sales, urging a closer look at the underlying dynamics.
December showcased a varied performance across segments. Two-wheelers stole the show with a 28% surge, followed by three-wheelers at an impressive 36%. Passenger vehicles (PVs) saw a modest 3% growth, tractors edged up by 0.2%, and commercial vehicles (CVs) managed a 1.3% increase. For the year as a whole, two-wheelers saw a 9.5% uptick, three-wheelers skyrocketed by 58.5%, PVs had an 11% increase, tractors grew by 7%, and CVs inched up by 8%.
Delving into the nuances, the CV category’s positive growth was fueled by increased industrial activity and infrastructure development. The bus segment, particularly in tourism and transportation, witnessed an uptick, partly fueled by orders from various state transport departments.
Fada President Manish Raj Singhania provided insights into the upbeat two-wheeler sales, attributing it to a confluence of factors such as numerous marriage dates, distribution of harvest payments to farmers, a wide range of available models, favorable weather, and generally positive market sentiment. However, Singhania also acknowledged the anticipation of price increases in January 2024 as a driver.
While cautious optimism pervades the India Auto Sales industry, Singhania stressed the need for prudent supply and inventory management, particularly in the PV category. The report maintains a positive outlook, buoyed by the launch of new models expected to keep market enthusiasm high. As the automotive sector navigates uncertainties, strategic inventory management will be crucial for maintaining this rollercoaster of growth in the upcoming months.
