FY23 Was First Full Year Without Any Impact Of Covid To Witness 21% Growth In Vehicle Sales: FADA

The Federation of Automobile Dealers' Association (FADA) released March 23 and FY 23 vehicle data. According to the press release, for the month of March 2023, total vehicle retail experienced a 14% YoY increase and FY23 was the first full year without any impact of Covid, with total retail witnessing a double-digit growth of 21% during the year.

For the month of march and for the full year, except tractors, all categories saw double-digit growth.
2-wheelers grew by 19% in March while for full year it was 12%. 3-wheeler was up by 84% and 69% in march and for the year respectively.

Passenger and commercial vehicles sales were up by 23% and 33% respectively for the month of March and for the year it were up by 14% and 10%. But Tractors experienced 8% and 4% growth in a month and for the year.

According to the data report, the 3-wheeler segment achieved record-high retail sales in month o march, surpassing the previous high figures of March 2020, which was a month when the industry made the transition from BS-4 to BS-6. Although the 2-wheeler segment demonstrated YoY growth, it was still below pre-pandemic levels, indicating that rural India is still bearing the burden of high inflationary costs.

US Government agencies have, for a third successive month, reiterated the possibility of El Niño's arrival later this year. This may result in poor monsoon thus hampering rural India's growth potential.

During the year, 2-wheeler category sales fell to 7 years low with total retails of 15.9 million, 3-wheeler category continued to grow at a healthy pace and was back to pre-covid levels of FY19. While passenger vehicles sales hit a record high by retailing 3.6 million vehicles The previous high was in FY'19 at 3.2 million vehicular sales.

Although tractors, though showed the least growth of only 8%, it still clocked all time high retails of 8.27 lakhs, beating its previous high of 7.82 lakhs in FY'21.

Accrording to the report, with high growth period now over, FY24 will witness a tapered growth of low single digit due to high inflationary pressure coupled with routine price hikes and regulatory
changes.

The report also shared that, Hero Motocorp Ltd, Honda Motorcycle And Scooter India (P) Ltd, TVS Motor Company Ltd and Bajaj Auto Group has retained its highest market share of 32.30%, 22.40%, 16.46% and 11.34% over a year.