Pune: The automobile retail sales surged 27 per cent in April, the first month of this fiscal, to 2.2 million units compared to the year before, the Federation of Automobile Dealers Associations or FADA said on Wednesday.
As many as 1.74 million units were sold in April 2023.
Positive market sentiments, bolstered by stable fuel prices, a favourable monsoon outlook, festive demand and the marriage season, contributed to this sales rise, FADA said.
New model launches also helped drive growth, despite some delays in supply, it noted.
Sales of two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicle grew by 33 per cent, 9 per cent, 16 per cent, 1 per cent, and 2 per cent respectively.
Auto dealers sold 3,35,123 passenger vehicles in April to mark a record as against 2,89,056 units sold last year.
As many as 90,707 commercial vehicles were sold in April compared to 88,663 units the same time last year. The segment grew 2 per cent Y-o-Y growth and declined 0.6 per cent month-on-month.
Three-wheeler sales touched 80,105 units, compared to 73,310 in April 2023. As many as 56,625 tractors were sold, compared to 55,857 units in April 2023.
“The passenger vehicle category experienced double-digit year-on-year growth, supported by enhanced model availability and favourable market sentiments, particularly around festive events like Navratri and Gudi Padwa, said FADA President Manish Raj Singhania.
He said despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth. The lack of new models in some portfolios also impacted market traction, Singhania noted.
The two-wheeler segment grew due to improved supply and demand for 125cc models. As many as 1.64 million two-wheelers were sold in April compared to 1.23 million units in the same month last year.
Lok Sabha elections had a “major impact on positive two wheeler sales,” noted Singhania.
“Positive momentum was found in bulk and corporate deals and school bus demand, though elections dampened sentiment, with customers delaying expansion plans. Limited finance options and regional challenges such as water scarcity further impacted performance,” he said.
“While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant. Comparing March and April 2024 with the same period last year shows a 14 per cent Y-o-Y growth for the entire industry,” Singhania said.
Improved supply and planning in the 2W segment have improved customer bookings and market sentiment, driven by positive crop yields said FADA about its May outlook.
In the passenger vehicle segment, new model launches and favourable monsoon forecasts would stimulate customer interest, while bulk deals in the commercial vehicle segment should bolster demand in sectors like iron ore, steel, and cement, FADA said.
