The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for Feb’24.
February’24 Retails
In February 2024, Indian Auto Retail saw a robust overall growth of 13% YoY, as noted by FADA President, Mr. Manish Raj Singhania. Every vehicle category, including 2W, 3W, PV, Tractors, and CV, registered growth rates of 13%, 24%, 12%, 11%, and 5% respectively.
“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.
The 3W market surged by 24% YoY, with EVs making up 53% of this growth, fuelled by first-time users and a shift towards Electric E-Rickshaws, alongside better market sentiment and consumer engagement.
The PV segment has exhibited an impressive 12% YoY growth, achieving the highest sales figures ever recorded for the month of February. This upward trajectory was propelled by the strategic introduction of new products and enhanced vehicle availability. While the sector benefits from favourable customer sentiment and the successful introduction of models in high demand, the persistently elevated inventory levels, remaining at 50-55 days, present a significant concern. It is imperative for PV OEMs to undertake adjustments in production to mitigate these high inventory levels, thereby reducing the financial burden of carrying costs on dealers as it is vital for maintaining the financial health of dealers. Adopting this forward-looking stance is essential for ensuring the sustained growth and vitality of this segment.
The CV segment grew by 5% YoY, overcoming challenges through fleet purchases and school buses, strong sectoral demand and improved financing, despite obstacles like cash flow shortages and election-related purchase deferrals, highlighting the sector’s resilience and gradual recovery.”
Near-Term Outlook
For the near term outlook, the auto retail sector is influenced by a blend of positive trends and challenges. The rural sector’s robust signals, along with an increased demand for premium and entry-level segments, are set to bolster the 2W market. Similarly, both the 3W and CV sectors anticipate a boost in sales, driven by the financial year-end rush and an infusion of funds into the market, which is expected to stimulate purchases. In the PV sector, the confluence of financial year-end buying incentives, improved availability of vehicles and seasonal factors such as marriages is likely to propel demand.
However, the anticipation of elections casts a shadow over this positive scenario, with potential deferred purchases across segments. The commercial vehicle sector, in particular, might face a cautious approach from customers waiting for the outcome of general elections. Supply constraints further complicate the landscape, especially in the PV segment, where the availability of popular variants remain a concern. External factors like crop failures in rural areas could also dampen market sentiment and financial liquidity, posing additional hurdles to sustained growth.
Overall, the near-term outlook for March 2024 in the auto retail sector is one of cautious optimism. Financial year-end activities traditionally spur purchasing across segments, yet the feedback from dealers highlights the nuanced challenges of inventory management, extremely aggressive target settings and evolving consumer preferences. OEMs’ ability to address these challenges through strategic product introductions, supportive dealer policies and adaptive sales strategies will be paramount in maintaining the sector’s growth momentum and achieving success in in the near term.
Key Findings from our Online Members Survey
Inventory at the end of Feb’24
Average inventory for Passenger Vehicles ranges from 50-55 days
Average inventory for Two – Wheelers ranges from 10-15 days
Liquidity
Neutral 49.80%
Good 32.81%
Bad 17.39%
Sentiment
Neutral 43.48%
Good 36.36%
Bad 20.16%
Expectation from Mar’24
Growth 56.13%
Flat 35.97%
De-growth 07.91%
Chart showing Vehicle Retail Data for Feb’24
All India Vehicle Retail Data for Feb’24
CATEGORY
FEB’24
FEB’23
YoY %
JAN’24
MoM%
2W
14,39,523
12,71,073
13.25%
14,58,849
-1.32%
3W
94,918
76,619
23.88%
97,675
-2.82%
E-RICKSHAW(P)
36,579
30,736
19.01%
40,526
-9.74%
E-RICKSHAW WITH CART (G)
4,435
2,446
81.32%
3,739
18.61%
THREE-WHEELER (GOODS)
10,768
8,305
29.66%
10,163
5.95%
THREE-WHEELER (PASSENGER)
43,065
35,076
22.78%
43,188
-0.28%
THREE-WHEELER (PERSONAL)
71
56
26.79%
59
20.34%
PV
3,30,107
2,93,803
12.36%
3,93,250
-16.06%
TRAC
76,626
69,034
11.00%
88,671
-13.58%
CV
88,367
84,337
4.78%
89,208
-0.94%
LCV
48,594
47,551
2.19%
49,835
-2.49%
MCV
6,454
5,001
29.05%
5,454
18.34%
HCV
28,271
28,359
-0.31%
29,179
-3.11%
Others
5,048
3,426
47.34%
4,740
6.50%
Total
20,29,541
17,94,866
13.07%
21,27,653
-4.61%
Source: FADA Research
Disclaimer:
The above numbers do not have figures from TS & LD.
Vehicle Retail Data has been collated as on 06.03.24 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,358 out of 1,445 RTOs.
Commercial Vehicle is subdivided in the following manner
LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
Others – Construction Equipment Vehicles and others
3-Wheeler is sub-divided in the following manner
E-Rickshaw – Passenger
E-Rickshaw – Goods
3-Wheeler – Goods
3-Wheeler – Passen
ger
3-Wheeler – Personal
February’24 category-wise OEM market share can be found in Annexure 1, Page No. 05
