Pune: The Indian automakers' passenger vehicle retail sales, the barometer of the Indian economy, jumped 13.3 per cent in January 2024 to 3,93,250 units, an all-time high retail sales, due to robust demand for the sports utility vehicles or SUVs, the Federation of Automobile Dealers Associations or FADA said on Tuesday.
The carmakers had retailed a total of 3,47,086 units in January 2023.
“The SUVs demand along with the introduction of new models, greater availability, effective marketing, consumer schemes and the auspicious wedding season underpinned this strong performance,” said FADA President Manish Raj Singhania.
However, he maintained that despite record sales, serious concerns remain regarding PV inventory level, which is now in the 50-55 day range.
“This calls for immediate recalibration of production from OEMs to better align with actual market demand and avoid future oversupply issues," Singhania noted.
The carmakers had reported record wholesales in January as they looked to build up inventory of new and refreshed models this calendar year.
“As adaptability is crucial in this dynamic industry, OEMs must balance innovation with strategic production planning to ensure sustained success and overall market stability," Singhania explained.
Meanwhile, two-wheeler sales increased 15 per cent year on year to 14,58,849 units in January as compared to the sales during the same period last year. According to FADA, the demand for two-wheelers remains steady, fueled by continued rural demand.
Singhania said improved vehicle availability, due to adjustments post-OBD 2 norm implementation, the introduction of new models and a shift towards premium options have collectively contributed to increased demand for two-wheeler sales.
“This, combined with a good harvest, a positive marriage season and effective follow-ups and offers, indicate a favourable trajectory for the two-wheeler sector,” he pointed out.
The commercial vehicle sales witnessed flat sales growth last month at 89,208 units. However, three-wheeler retail sales witnessed an increase of 37 per cent to 97,675 units from 71,325 units in January 2023.
Tractors sales rose 21 per cent year on year to 88,671 units in January.
The total automobile retail sales last month stood at 21,27,653 units, up 15 per cent from 18,49,691 units in January 2023.
For February 2024, FADA anticipates a multi-faceted outlook, with positive factors such as ongoing marriage seasons, anticipated income from agricultural sales, successful new model launches, and favourable post-Union Budget policies boosting volumes.
However, some challenges such as market uncertainty due to upcoming elections, persistent supply bottlenecks, and fluctuating market liquidity may act as a dampener.
