News Details

( As on 05/06/2023 14:18)

Automobile retail sales in India rise 10% in May: FADA

Automobile retail sales in India rose 10% in May 2023, compared to the same month last year. This was driven by robust demand across segments, including passenger vehicles, two-wheelers, and tractors.

Passenger vehicle sales rose 4% to 2,98,873 units in May, compared to 2,86,523 units in May 2022.

Two-wheeler retail sales last month rose 9% to 14,93,234 units, compared to 13,65,924 units in May 2022.

Commercial vehicle retail sales rose by 7% to 77,135 units last month, compared to 71,964 units in May last year.

Three-wheeler retail sales rose 79% to 79,433 units last month, compared to 44,482 units in the year-ago period.

Tractor sales rose to 70,739 units, up 10%, as compared to 64,528 units in May 2022.

The Federation of Automobile Dealers Associations (FADA) attributed the growth in automobile retail sales to a number of factors, including, improved availability of vehicles, Pending order list, Robust demand for new launches, Seasonal factors such as the marriage season, Changes in the FAME subsidies effective from June and recovery of rural demand.

FADA also said that the anticipated stable interest rates by RBI's Monetary Policy Committee could maintain vehicle demand and positively impact auto sales. However, supply chain issues, demand-supply dynamics, and regulatory changes also play a role in shaping the auto retail outlook.

Overall, the growth in automobile retail sales in May is a positive sign for the Indian automotive industry. It is expected that this trend will continue in the coming months.