Automobile retail sales in India sees 8.31% growth in August, says FADA

Retail sales of automobiles in India registered an increase of 8.31 per cent in August this year. The Federation of Automobile Dealers Associations (FADA) observed a rise in registrations of vehicles across all major segments. The total retail sales in vehicles stood at 15,21,490 units last month against the same period in the previous year which saw retail sales of 14,04,704 units.

The passenger vehicle segment noted sales of 2,74,448 units compared to 2,57,672 units in the same month in 2021 resulting in a growth of 6.51 per cent. The two-wheeler segment sold 10,74,266 units last month against 9,89,969 units in August 2021, therefore, growing by 8.52 per cent. The three-wheeler segment witnessed the highest growth last month which stood at 83.14 per cent. About 56,313 units were sold in this segment last month compared to the 30,748 units in the same period in the preceding year. The commercial vehicles segment also witnessed a growth of 24.12 per cent at 67,158 units as against 54,107 units in the year-ago month.

Despite an increase in the retail sales in all the segments, FADA President Manish Raj Singhania said in a PTI report that August sales were not as per expectations of dealers, who anticipated a good start to the festive season with Ganesh Chaturthi. “When compared with August 2019, a pre-COVID month, total vehicle retails fell by 7 per cent. While PV outperformed handsomely by growing 41 per cent, CV also turned positive by growing 6 per cent and thus came out of the COVID blues. All the other segments were in the red with 2W, 3W and tractors falling by 16 per cent, 1 per cent and 7 per cent, respectively," he was quoted as in the report.

Singhania also added that though the two-wheeler segment grew 8.5 per cent last month on a year-on-year basis, it still continues to face Covid-19 blues due to underperformance in rural India as it is still not above 2019 levels.