Auto Sales in India Surged 11% in 2023, by FADA

Published On: 8 January 2024
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Sales as of December 2023 were down 30.25 percent from November 2023, but up 21.14 percent from 2022.

The Indian auto industry saw a sales growth of 11.05 percent year over year in calendar year (CY) 2023, according to a report by the apex dealer body, the Federation of Automobile Dealers Association (FADA). Sales totaled 2,38,67,990 units, which is an increase from the 2,14,92,324 units recorded in CY2022. According to FADA data, every segment saw growth in CY2022 compared to the previous year, with three-wheelers experiencing the biggest growth at 58.50 percent, next to passenger cars and two-wheelers.

Sales of passenger vehicles increased 10.61 percent over the previous year, to 38,60,268 units, for the year. In contrast, sales of two-wheelers increased 9.45% from 1,55,88,352 units in CY2022 to 1,70,61,112 units in the previous year. Tractor sales increased by 7.09 percent to 8,71,627 units in CY2023, while commercial vehicle sales increased by 8.28 percent to 9,94,330 units.

Only light commercial vehicles saw a slight decrease in sales in December 2023, with overall sales remaining positive. Sales of two-wheelers increased significantly from 11,36,465 units in December 2022 to 14,49,693 units in the exact same month the previous year, a notable year-over-year growth of 27.56 percent.

Manish Raj Singhania,FADA President, in favour of the segment’s performance, said, “In the 2W category, key drivers included an abundance of marriage dates and the distribution of harvest payments to farmers, which enhanced purchasing power. Additionally, the availability of a wide range of models and variants, coupled with favourable weather conditions and a generally positive market sentiment, contributed to this robust growth. Enhanced product acceptance, particularly among the youth, and lucrative financial options, coupled with the anticipation of price increases in January 2024, spurred purchases.”

In contrast, sales of passenger vehicles increased slightly to 2,93,005 units, or 2.65%. Speaking during the segment, Singhania stated that there was a lot of demand for SUVs in particular, with some models having long waiting lists. Singhania ascribed this to both new models entering the market and aggressive year-end brand promotions.

Sales of commercial vehicles and tractors, on the other hand, were comparatively flat; the former saw growth of 1.31 percent while the latter saw a gain of 0.22 percent. It's interesting to note that, when compared to November 2023, every segment except tractors showed a monthly decrease.

FADA stated that it had a favorable outlook for the foreseeable future as well as the long run. The dealer association stated that it anticipated a short-term increase in two-wheeler sales in the second half of January and continued growth in CV demand due to infrastructure projects and other factors. Regarding PVs, FADA stated that while it anticipated a boost in sales, the primary priorities would be to fulfill current orders and launch 2024 models.