FADA releases May’24 Vehicle Retail Data

Jammu Tawi: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for May'24.FADA President Manish Raj Singhania commented on May 2024's auto retail performance, stating, “In May 2024, the Indian Auto Retail sector achieved a modest 2.61% YoY growth. The two-wheeler (2W), three-wheeler (3W) and commercial vehicle (CV) segments grew by 2.5%, 20% and 4% while passenger vehicle (PV) and tractor (Trac) were in red by 1% each YoY.The two-wheeler segment grew by 2.5% YoY but declined by 6.6% MoM. Dealers reported supply constraints, lack of OEM marketing activities and impacts from extremely hot weather and elections. Positive rural demand due to expected good monsoon and improved finance availability were also noted which kept the counters ticking.The PV segment showed -1% YoY and a -9.5% MoM decline. Dealers cited the impact of elections, extreme heat and market liquidity issues as major factors. Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by OEMs affected sales. Additionally, increased customer postponements and low enquiries further contributed tothe challenging market conditions. Due to the extreme heat, the number of walk-ins to showrooms dropped by around 18%.The CV segment showed a 4% YoY growth but an -8% MoM decline. Dealers reported that elections and extreme climatic conditions heavily impacted sales. Despite growth due to a low base from last year and increased bus orders, the industry faced challenges from wholesale pressures, government policy effects, and negative market sentiment. Additionally, good movement in market loads, cement, iron ore, and coal sectors contributed positively.Overall, while the auto retail sector saw mixed results, the industry is navigating through significant challenges with cautious optimism for the coming months.”