Auto retail sales rise 14% in January: FADA

Automobile retail sales in India rose 14% in January owing to robust registrations across passenger vehicles, two-wheelers and tractors, dealers’ body Federation of Automobile Dealers Associations (FADA) said on Monday. FADA President Manish Raj Singhania said the total retail sales in January grew as compared with year-ago period but still remained down by 8 per cent when compared to pre-Covid month of January 2020.

Automobile retail sales in India rose 14% in January owing to robust registrations across passenger vehicles, two-wheelers and tractors, dealers’ body Federation of Automobile Dealers Associations said on Monday.

Total sales across categories last month rose to 18.27 lakh units, as compared to 16.08 lakh units in January 2022.

Passenger vehicle registrations rose by 22% year-on-year to 3.40 lakh units last month while two-wheeler retails rose 10% to 12.65 lakh units last month. Three-wheeler retail sales rose to 65,796 units, up 59% from 41,487 units in January 2021.

Commercial vehicle registrations were at 82,428 units in January, up 16 per cent from 70,853 units in the year-ago period.

Similarly, tractor sales rose by 8 per cent to 73,156 units last month, as against 67,764 units in January last year.

FADA President Manish Raj Singhania said the total retail sales in January grew as compared with year-ago period but still remained down by 8 per cent when compared to pre-Covid month of January 2020.

“While good enquiry, healthy bookings and improved supplies are helping aid this segment, it is the entry level sub-segment which is still feeling the pinch,” he said.

On two-wheeler sales, he said that sentiments were improving at a snail’s pace but were better than what it was a year ago.

“Rural market is yet to fully come to the party as cost of ownership has shot up significantly while disposable income has not increased in the same ratio,” Singhania said.

Continued demand in the market due to replacement of fleet, growth in freight availability and government’s consistent push for infrastructure projects has helped the commercial vehicle segment rise above pre-covid numbers, he noted.

On business outlook, Singhania said: “With China’s factory activity once again gaining pace, global supplies of parts and semiconductors will see a recovery thus aiding better vehicle supplies and lower waiting period in future. This will further fuel growt ..