In February 2024, the Indian automobile retail segment witnessed a growth of 13% Year on Year (YoY) across all vehicle categories led by two- and three-wheelers.
“2W, 3W, PV, Tractors and CV sectors registered growth rates of 13%, 24%, 12%, 11% and 5% respectively,” the Federation of Automobile Dealers Association (FADA) said in a statement.
The 2W market growth of 13% YoY was notably driven by the rural sector, demand for premium models and strong performance of entry-level segments, it said.
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, it added.
FADA said 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,” it said.
The CV sector achieved a 5% YoY growth, overcoming challenges such as cash flow shortages and election-related purchase deferrals, it added.
“The 2W market’s 13% YoY growth was driven by the rural sector, premium model demand, and strong entry-level segment performance, with broader product availability and compelling offers enhancing product acceptance. Factors like favourable marriage dates and improved economic conditions also contributed to this positive growth,” said Manish Raj Singhania, president, FADA.
