Automobile sales were up 10% YoY in July but down 5% MoM, according to the FADA

8 Aug 2023 , 01:14 AM

According to figures released on Monday by the Federation of Automobile Dealers Associations (FADA), while sales of cars increased 10% year over year, they actually decreased 5% in July.

Retail sales of three-wheelers reached a record high of 94,148 units, up 74% YoY and 9% MoM from the previous high of 86,857 units achieved in March 2023. According to FADA, the entry-level section of the two-wheeler market continues to be of concern. Concerns about expedited loan disbursements for buyers are present in the CV market, it was added.

In July 2022, total retail sales across all categories were 16,09,217 units. Last month, they increased to 17,70,181 units. Sales of passenger vehicles increased by 4% last month to 2,84,064 units from 2,73,055 units in the same month last year.

‘With the launch of new items, the month saw a spike in orders and prompt OEM supplies. However, sales were negatively impacted by the heavy monsoons and flood-like conditions, particularly in North India, according to FADA President Manish Raj Singhania who talked to ET. He proceeded by saying that shoppers continued to favour SUVs.

Despite obstacles like persistent monsoons and a shift toward EVs, according to Singhania, the two-wheeler market has shown resilience thanks to rising demand and consumer confidence in respected brands.

‘A bigger worry is the IMD’s forecast for August’s rainfall, which could result in poorer agricultural yields. This may have an effect on purchasing power, particularly in rural areas, it was added.

Overall retails reported a 13% reduction from pre-COVID levels, with the 2-wheelers segment struggling with a large 23% decline and CVs experiencing a 4% decline.

‘While precaution remains the key word in the immediate future, FADA is positive about business prospects, specifically with the festive season coming up on the horizon,’ FADA stated.

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