FADA: India’s auto sales up by 9%, 3W sales at record high in August: FADA

India’s overall auto sales in August registered an annual growth of 9 per cent, marginally lower than previously reported figures, said the Federation of Automobile Dealers Association (FADA) on Tuesday.

The uptick was consistent across multiple vehicle categories, with 2W seeing a 6 per cent increase, PV at 6.5 per cent, Trac rising 14 per cent, and CV up by 3 per cent.

Sequentially, the industry saw a 3 per cent growth in total auto retail sales, although the tractor segment experienced a substantial 19 per cent contraction.The three-wheeler (3W) sales jumped 66 per cent on an annual basis in August, setting a consecutive all-time high retail records in the month.
The 3W sales for August peaked at 99,907 units, marking a 6 per cent month-over-month growth.”In the PV arena, improved vehicle supply, bolstered by expanded customer schemes, has maintained positive market dynamics. Despite such advances, supply chain bottlenecks persist, particularly in timely deliveries. The market has responded favourably to the introduction of new hybrid and CNG models; however, a constrained product range in popular segments, such as mid-size SUVs, continues to limit overall potential. It is alarming that inventory levels have exceeded a 60-day supply for the first time, even before the onset of the Navratri-Diwali festivities—a trend that necessitates vigilant monitoring by PV OEMs,” said FADA President, Manish Raj Singhania. Unlike other categories, sales of tractors witnessed a 19 per cent decline, as per the latest data. The CV sector revealed a multi-faceted scenario; despite headwinds such as sluggish cargo movement, verticals like cement, iron ore, and coal exhibited robust demand. “As the festive season approaches, indicators suggest a market recovery, reinforced by priority supply scheduling and a resurgence in travel-related sales. Aggressive promotional initiatives and enhanced customer sentiment further support this optimistic outlook,” Singhania added.

The FADA report, citing a Reuters report, also said that the meteorological factors are expected to influence rural demand during the pivotal Navratri-Diwali period as India is likely to experience its lowest monsoon levels in eight years, thereby raising concerns over soil moisture and the impact on winter crops.

“Although the dealership network is buoyed by optimistic sentiment, FADA adopts a cautious stance, in view of the suboptimal rainfall which could potentially affect the forthcoming festive season,” it further stated.

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