Indian Automobile Retail Registers Robust 13% On Year Growth In February, Reports FADA

According to the Federation of Automobile Dealers Associations (FADA), Indian Auto Retail experienced a robust 13% YoY growth in Feb24 across all vehicle categories.

2W, 3W, PV, Tractors and CV sectors registered growth rates of 13%, 24%, 12%, 11% and 5% respectively.

2W market growth of 13% YoY was notably driven by the rural sector, demand for premium models and strong performance of entry-level segments. The 3W market saw a significant 24% YoY increase, with EVs constituting 53% of this growth, highlighting a shift towards Electric E-Rickshaws and an increase in first time users.

PV segment recorded a 12% YoY growth, marking the highest February sales figures ever, driven by new product introductions and enhanced vehicle availability. Elevated inventory levels in the PV segment, remaining at 50-55 days, pose a significant concern, necessitating OEMs to adjust production to reduce dealer carrying costs.

The CV sector achieved a 5% YoY growth, overcoming challenges such as cash flow shortages and election-related purchase deferrals.

Near-term outlook for March 2024 suggests cautious optimism, with potential growth driven by robust signals from the rural market and financial year-end buying activities.

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