FADA Raises Concern On Poor Rains Hitting Rural Sales

Mobility Outlook Bureau
05 Sep 2023
03:45 PM
1 Min Read

While August sales have generally been on the rise, FADA is worried that the tepid monsoons could play havoc with the growth story.

fada sales august 2023

Total vehicle sales in August were up 2.74 % from the preceding month, according to data released by the Federation of Automobile Dealers Associations (FADA). At 1.81 million units, they increased by 8.63% from 1.67 million units in August 2022.

A breakup shows that passenger vehicle sales were up 6.53% to 3.15 lakh units from 2.95 lakh units in the same period last year. Two-wheeler sales increased by 6.29 % to 1.25 million units from 1.18 million units.

As for three-wheelers, numbers were up 66.15% YoY to an all-time high of 99,907 units from 60,132 units. The electric rickshaw passenger category was up 57.73% to 46,174 units while sales of its ICE counterpart were up 81.09% to 41,482 units.

In this backdrop, FADA foresees reduced demand from the rural segment due to insufficient rainfall this year. The launch of newer models has helped garner some interest from consumers and the festive season will, hopefully, give a respite to two-wheelers and passenger cars.

As for commercial vehicles, sales grew by 3.23% to 75,294 units with sectors like cement, iron ore and coal showing good demand. Tractor sales fell by 13.58% to 73.849 units with scarce rainfall being a point of concern for the future.

FADA has indicated that PV inventory levels have surpassed the 60-day supply threshold. While manufacturers have been working towards improving supply of vehicles, bottlenecks still remain on uneven delivery timelines. Another area of anxiety is the reduced monsoon levels and its fallout on soil moisture and winter crops. This could hit rural demand in the festive season.

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