In a report released on Tuesday, the Federation of Automobile Dealers Associations (FADA) disclosed that retail sales of passenger vehicles soared to unprecedented levels in January. The surge was predominantly fuelled by the escalating demand for sports utility vehicles (SUVs).
According to FADA, passenger vehicle (PV) sales ascended to a staggering 393,250 units last month, marking an impressive 13 per cent leap from the 347,086 units recorded in January 2023.
President of FADA, Manish Raj Singhania, attributed the robust performance to several factors including heightened SUV demand, the introduction of new vehicle models, improved availability, effective marketing strategies, consumer incentives, and the auspicious wedding season.
However, Singhania expressed concerns over the inventory levels, which have now extended into the 50-55 day range, urging original equipment manufacturers (OEMs) to promptly adjust their production to align with the actual market demand and avert potential oversupply issues.
He highlighted the necessity for OEMs to strike a balance between innovation and strategic production planning to ensure enduring success and maintain overall market stability.
In the two-wheeler segment, sales surged by 15 per cent year-on-year (YoY), reaching 1,458,849 units in January. Singhania credited this growth to improved vehicle availability following adjustments post OBD 2 norm implementation, the launch of new models, and a shift towards premium options. Factors such as a favourable harvest season, a positive marriage season, and effective follow-ups and offers further contributed to the sector’s promising trajectory.
Commercial vehicle sales witnessed a stagnant growth last month, remaining at 89,208 units. On the other hand, three-wheeler retail sales witnessed a notable uptick, surging by 37 per cent to 97,675 units from 71,325 units in January 2023.
In the agricultural machinery sector, tractor sales observed a robust 21 per cent YoY increase, totalling 88,671 units in January.
Overall, retail sales in January reached a remarkable 2,127,653 units, marking a substantial 15 per cent surge from the 1,849,691 units recorded in January 2023.
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