Firing on all cylinders

February 2023 auto retails rose 16 percent, and all the five segments recorded double-digit growth ahead of festive March. Ajit Dalvi deep dives into the market to file this report.

-  Ajit Dalvi

The India Auto Inc growth story is going strong, as can be seen by the February 2023 retail numbers. Released by the Federation Automotive Dealers' Association of India, the 17,75,424 units encompassing cumulative sales of five vehicle segments represent a 15.95 percent year-on-year increase over February 2022's 15,31,196 units. And it's set to improve in March 2023, which has a number of festivals that help drive vehicle buying in India.

Importantly, in February, all five segments have recorded growth - two-wheelers (15 percent), three-wheelers (81 percent), passenger vehicles (11 percent), commercial vehicles (17 percent) and tractors (14 percent). The numbers are indicative of the improving economic scenario in the country albeit according to FADA president Manish Raj Singhania, overall retails last month are down by around 8 percent when compared to the pre-Covid month of February 2020.

TWO-WHEELER RETAILS

12,67,233 units 14.75 percent

The two-wheeler industry's February 2023 retail sales of 12,67,233 units are up 14.75 percent on the year-ago 11,04,309 units. However, seen month-on-month, this number is just 2,164 units more than January 2023's 12,65,069 units. This indicates the sector is yet to see a strong revival and is awaiting the return of demand from rural India, which is a big buyer of entry-level commuter motorcycles. Compared to February 2020, retails are down by 14 percent and the FADA president is of the opinion that high inflation and poor sentiment continue to keep two-wheeler buyers at bay.