Mumbai, Aug 8:Ā The Indian automobile retail sector marked a remarkable 10 per cent year-on-year growth in July, propelled by robust sales across passenger vehicles, two-wheelers, and commercial vehicles, according to a statement by the Federation of Automobile Dealers Associations (FADA).The cumulative retail sales across various segments surged to 1,770,181 units last month, a notable climb from 1,609,217 units reported in July 2022.
In the passenger vehicle category, sales saw a 4 per cent uptick, reaching 284,064 units in July compared to 273,055 units in the corresponding period of the previous year.
“The month saw a surge in orders and timely OEM supplies, especially with the introduction of new products. However, severe monsoons and flood-like situations especially in North India, impacted sales,” FADA President Manish Raj Singhania said.
The popularity of SUVs persisted as they continued to be a favoured choice among buyers.
Two-wheeler retail sales witnessed an 8 per cent surge, reaching 1,228,139 units in July compared to 1,135,566 units in the same period the previous year.
“The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school buses, challenges from erratic weather and high vehicle costs affected demand,” Singhania said.
Commercial vehicle retail sales demonstrated a 2 per cent year-on-year growth, totalling 73,065 units, up from 71,619 units in July 2022.
“The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school buses, challenges from erratic weather and high vehicle costs affected demand,” Singhania said.
Furthermore, three-wheeler sales surged by 74 per cent year-on-year, while tractor sales experienced a healthy growth of 21 per cent in the same month.
While FADA remains cautious about the business outlook in the short term, it expressed optimism about retail growth prospects, particularly with the upcoming festive season.