According to industry group FADA, retail auto sales in India increased by 10% annually in July as a result of strong sales of passenger, two-wheel, and commercial vehicles.
In July 2022, total retail sales across all categories were 16,09,217 units. Last month, they increased to 17,70,181 units.
According to a statement from the Federation of Automobile Dealers Associations (FADA), sales of passenger vehicles increased by 4% last month to 2,84,064 units from 2,73,055 units in the same time the previous year.
“With the launch of new items, the month witnessed a spike in orders and prompt OEM supply. However, sales were negatively hampered by the heavy monsoons and flood-like conditions, particularly in North India, according to FADA President Manish Raj Singhania.
He proceeded by saying that shoppers continued to choose SUVs.
Retail sales of two-wheelers increased by 8% to 12,28,139 units in July from 11,35,566 units during the same time in 2017.
Despite obstacles like persistent monsoons and a shift toward EVs, according to Singhania, the two-wheeler market has shown resilience because to rising demand and consumer confidence in respected brands.
Retail sales of commercial vehicles increased by 2% year over year to 73,065 units in July 2022 from 71,619 units in July 2022.
“The dynamics of the CV sector were erratic. Demand was impacted by problems from unpredictable weather and high vehicle prices despite strong stock availability and expansion in sectors like school buses, Singhania added.
Sales of three-wheelers increased 74% year over year last month, while those of tractors saw a respectable 21% increase.
Over 15,000 vehicle dealers are represented by FADA, which said that it continues to be apprehensive about the future of company.
While prudence is still necessary in the near future, the FADA is optimistic about the potential for retail development, particularly with the holiday season just around the corner.
According to FADA, the entry-level section of the two-wheeler market continues to be of concern.
Concerns about expedited loan disbursements for purchasers are present in the CV market, it was said.
In addition, PV inventory has exceeded the 50-day mark in preparation of the approaching festival season, and the slowdown in the entry-level automobile vertical is still present, according to FADA.
“A bigger worry is the IMD’s forecast for August’s rainfall, which might result in poorer agricultural yields. This may have an effect on buying power, particularly in rural areas, it was stated.