Retail vehicle sales increased by 15.95% year-on-year (YoY) to 17,75,424 units in February this year, according to the latest data from the Federation of Automobiles Dealers Association (FADA). In February 2022, retail vehicle sales stood at 15,31,196 units. The surge is boosted by the launch of new models, continuously improving supply coupled with a healthy booking-to-cancellation ratio, and the wedding season, according to FADA.
"February'23 continued to witness double-digit growth of 16% YoY but was still down by -8%, when compared to the pre-covid month of February 2020. All categories also witnessed double-digit growth with 2- wheeler, 3-wheeler, passenger vehicle, tractor, and commercial vehicles growing by 15%, 81%, 11%, 14% and 17% respectively on YoY basis," said Manish Raj Singhania, president, FADA.
In the passenger vehicle segment, the retail sales surged 10.99% YoY to 2,87,182 units in February, as against 2,58,736 units in the same period last year. Of this, Maruti Suzuki led the retail sales by selling 1,18,892 units, followed by Hyundai Motors India which sold 39,106 vehicles. Tata Motors and Mahindra and Mahindra Ltd, sold 38,965 units and 29,356 units, respectively.
"The passenger vehicle segment saw a growth of 11% YoY and 16% when compared to the pre-covid month of February 2020. Launch of new models, continuously improving supply coupled with the healthy booking to-cancellation ratio and wedding bells kept the momentum going for this already well-to-do segment," said Singhania.
In the commercial vehicle segment, retail sales surged by 17.27% YoY to 79,027 units in February this year against 79,027 units in the same period last year. Of this, Tata Motors sold 30,280 units, thus leading the commercial vehicle retail sales. Mahindra and Mahindra Limited sold 18,845 units, Ashok Leyland sold 13,331 units, and Maruti Suzuki India sold 3,209 units in February.
Singhania said, "The commercial vehicle category has also shown robust growth by growing 17% YoY though it fell by - 10% when compared to the pre-covid month of February 2020. Walk-in inquiries improved during the month. Apart from this, demand has also increased due to changes in OBD norms which will see price hikes. On the Government’s side, infrastructure spending has been healthy. This is also aiding better sales."
In the two-wheeler segment, the retail sales surged 14.75% YoY to 12,67,233 units in February against 11,04,309 units in the same period last year. "The two-wheeler category witnessed a growth of 15% YoY but was down by -14% when compared to the pre-covid month of February 2020. The change in OBD norms which came into effect in April along with the marriage season kept the sales ticking. On the overall, high inflation and poor sentiment has kept the customers at bay," Singhania said.