India’s April auto retail sales witnessed a 4% drop to 1.72 million units, down from 1.79 million units in the same month last year, according to data from the Federation of Automobile Dealers Associations (FADA). The decline is primarily due to a dip in customer demand for two-wheelers and pre-buying in March. However, the market is expected to recover in May, thanks to higher inquiries for the upcoming marriage season.
The two-wheeler and passenger vehicle categories experienced year-on-year (YoY) degrowth of 7% and 1%, respectively. The two-wheeler segment’s low sales are attributed to limited supplies caused by the OBD 2A shift, untimely rains, and pre-buying in March. In contrast, the three-wheeler segment saw robust growth of 57% YoY, driven by high demand in e-rickshaw and passenger segments.
The passenger vehicle (PV) segment, which achieved record sales in FY23, slowed down in April, with retail decreasing by 1% YoY. The decline is primarily due to last year’s high base and the OBD 2A norms. The commercial vehicle (CV) segment maintained positive momentum with a 2% increase in retail sales, while vehicle availability remained a concern due to the OBD 2A norms.
FADA has requested the Goods and Services Tax (GST) Council to consider reducing GST on two-wheelers from 28% to 18% to help revive this crucial segment. The upcoming marriage season in May and increasing popularity of electric vehicles (EVs) may contribute to a sales resurgence.
NEW LAUNCH: Italian Luxury ‘Ferrari Purosangue SUV’ Cars in India
