FADA Releases April’23 Vehicle Retail Data

APRIL 4, 2023:The Federation of Automobile Dealers Associations (FADA) has released the Vehicle Retail Data for April 2023.

PERFORMANCE HIGHLIGHTS

1. Modest Vehicle Retail Performance in April to kick off FY'24: The fiscal year 2024 started with a slow start in vehicle retail performance in April.
2. 4% decline in total vehicle retails: April witnessed a 4% decline in overall vehicle retails, indicating a sluggish beginning to FY'24.
3. Healthy YoY growth in 3-wheelers: The 3-wheeler segment experienced a significant year-on-year (YoY) growth of 57%.
4. Marginal growth in Tractor and Commercial Vehicle (CV) sales: Tractor sales observed a marginal growth of 1%, while CV sales experienced a 2% increase.
5. Setback for 2-wheelers and passenger vehicles: Both the 2-wheeler and passenger vehicle segments faced setbacks, declining by 7% and 1%, respectively.
6. YoY degrowth in passenger vehicles: For the first time in eight months, the passenger vehicle segment witnessed a YoY degrowth.
7. Struggles in the entry-level 2-wheeler segment: The entry-level 2-wheeler segment continued to face challenges, declining by 19% compared to April 2019 (pre-COVID), contributing to a 12% decline in total vehicle retails.
8. FADA urges GST rate reduction for 2-wheelers: FADA has appealed to the GST Council to consider reducing the GST rate for 2-wheelers from 28% to 18% to revive the struggling segment.
9. OBD 2A norms lead to price increases: The implementation of OBD 2A norms resulted in increased vehicle prices, which prompted advanced purchases in March.
10. Unfavourable weather conditions impacting sales: Unseasonal rains and hailstorms in April caused crop damage in several states, exacerbating farmer concerns. These conditions have the potential to impact entry-level 2-wheeler and passenger car sales.

These highlights provide an overview of the vehicle retail performance in April 2023 and shed light on the challenges faced by different segments of the automobile industry.

ALL INDIA VEHICLE RETAIL DATA FOR APRIL 2023