Auto sales in April: 27% YoY growth in vehicle sales, PVs saw 16% spurt in sales, says FADA

FADA auto sales: The Federation of Automobile Dealers Association (FADA) on Wednesday said that the Indian automobile retail sector has achieved 27 per cent year-on-year (YoY) growth in April this year, while the vital passenger vehicle segment, which includes private cars saw a 16 per cent growth during this period, largely driven by rural sales.

In a statement issued FADA said the combined March-April retail sales showed a 14 per cent YoY increase. As per the data provided by FADA as many as 22,06,070 vehicles, including two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles were sold by automobile manufacturers in the month of April. Comparatively, the auto sales witnessed in April, 2023 were 17,40.649. 

Segment-wise sales 

On a month-on-month (MoM) basis there has been a 3.71 per cent increase in vehicle sales recorded during April, 2024. A month earlier in March this year, as many as 21,27,177 vehicle units were sold by automobile manufacturers in the country. 
In terms of two-wheeler sales, 16,43,510 units were sold in April, 2024 witnessing a significant 33.21 per cent growth as compared to 12,33,763 units sold in the same period last year. 
Three-wheeler sales a growth of 9.27 per cent with sales of 80,105 units sold in April 2024 as compared to 73,310 units sold in the same period last year. However, there has been a negative trend witnessed in terms of MoM sales as 1,05,222 units were sold in March, 2023, FADA data further added. 
Commercial vehicle segment saw sales of 90,707 units sold in April this year, witnessing a 2.31 per cent YoY growth as compared to 88,663 units sold in same period last year. However, on a MoM basis, there as a fall of 4.71 per cent seen in the CV segment.

Growth Trends

As per FADA President Manish Raj Singhania the robust growth in auto sales can be attributed to the shift in Navratri to April instead of March last year. The overall increase was significant, Singhania added. 

Comparing combined March and April 2024 with the same period last year shows a 14 per cent YoY growth for the entire industry, he added. 
The two-wheeler segment saw notable growth due to improved supply and the increasing demand for 125cc models. Positive market sentiments, bolstered by stable fuel prices, a favourable monsoon outlook, festive demand and the marriage season, contributed to this rise. New model launches also helped drive growth, despite some delays in supply, said FADA release. 
The PV category experienced double-digit YoY growth, supported by enhanced model availability and favourable market sentiments, particularly around festive events like Navratri and Gudi Padwa, it added.

Near-Term Outlook

As per FADA, the outlook for May 2024 in autos is shaped by several positive indicators. A significantly improved vehicle supply and strategic planning in the two-wheeler segment have led to rising customer bookings and better market sentiment, driven by favourable crop yields, said FADA release. 

In the PV segment, new model launches and favourable monsoon forecasts are set to stimulate customer interest, while bulk deals in the CV segment should bolster demand in sectors like  iron ore, steel, and cement, it added. The demand for new electric models and sustained demand for conventional vehicles are likely to provide further momentum.
Despite these positive trends, challenges remain. Election uncertainty continues to affect market sentiment, delaying customer conversions and stalling purchasing decisions. Financial constraints, extreme temperatures, and overcapacity in the CV segment could slow growth, while heavy discounting in the PV  segment could impact profitability. Seasonal factors such as no marriage dates and a lack of major festive events may also influence demand.
The auto industry remains cautiously optimistic about its near-term outlook. Market opportunities exist with rising customer interest in new models. However, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively, said the FADA outlook.