Compared to 1.85 million vehicles sold in the same month in 2023, retail car sales increased by 15% to 2.13 million units in January 2024. According to data shared by the Federation of Automobile Dealers Associations (FADA), this growth was seen across all vehicle categories, including two-wheelers, three-wheelers, passenger cars, tractors, and commercial vehicles, which reported increases of 15%, 37%, 13%, 21%, and 0.1%, respectively.
The passenger vehicle (PV) category had a record-breaking month in January 2024, surpassing the previous record established in November 2023 with retail sales of 393,250 units, a 13% increase from 347,086 units in January 2023. Demand for SUVs, the release of new models, increased availability, efficient marketing, consumer promotions, and the fortunate timing of weddings all contributed to the excellent success.
Concerns about PV inventory levels, which are currently in the 50–55 day range, still exist, nevertheless. In order to better meet current market demand and avoid future oversupply problems, original equipment manufacturers are required to immediately recalibrate their output. In an ever-changing market, flexibility is essential. To guarantee long-term success and general market stability, OEMs must strike a balance between innovation and strategic production planning, according to FADA President Manish Raj Singhania.
The two-wheeler market had a good start to the year thanks to new model introductions, a move towards premium options, and enhanced vehicle availability as a result of modifications made after the implementation of the Onboard Diagnostic 2 (OBD 2) standard. Together with a healthy crop, a happy marriage season, and successful follow-ups and offers, these factors point to a promising future for the two-wheeler industry. Sales of two-wheelers increased to 1.46 million from 1.27 million in the same month the year before.
"The three-wheeler industry gave a conflicting impression. The commercial three-wheeler market continues to develop and be optimistic, but the increased competition from electric models indicates a substantial shift in the sector, with five5% of vehicles already electrified," he continued. In January 2023, the segment saw a 37% rise, from 71,325 units to 97,675 units.
A complicated picture of the commercial vehicle (CV) segment's year-over-year increase was also presented in January 2024. On the one hand, several market categories were bolstered by increasing port activity, infrastructure expansion, and favorable crop yields. Extreme weather, limited liquidity, high car prices, and more constrained financing alternatives, Singhania pointed out, negated this momentum. In the CV sector, retail sales were 89,208 units in the month, indicating a modest increase from 89,106 units in the prior year.
