Vehicle Registrations Surge to 2.1 Million in January

16 Feb 2024 CW Team

With rural markets showing signs of recovery, vehicle retailers are optimistic about sustaining this momentum in the upcoming months. FADA President Manish Raj Singhania expressed positivity, stating that the year commenced on a strong note, with retail sales witnessing growth across various categories last month.

The two-wheeler segment notably witnessed a 15% increase in sales, reaching 1,458,849 units, while three-wheeler sales surged by 37% to 97,675 units. Singhania attributed the steady demand for two-wheelers to the strength of the rural market, fueled by favorable government policies supporting agricultural activities.

In the passenger vehicle segment, January set a new record with sales totaling 393,250 vehicles, surpassing the previous high set in November 2023. The demand for SUVs, combined with effective marketing strategies and consumer schemes, contributed to this achievement. However, Singhania highlighted concerns regarding high inventory levels, posing challenges for auto dealers.

Tractor sales experienced a positive uptick, likely driven by optimism surrounding the Rabi crop output and favorable weather conditions for agricultural activities. Conversely, the commercial vehicle segment is expected to witness a slowdown in the fourth quarter due to a high base effect and upcoming elections.

Despite short-term cautiousness due to the impending elections, FADA remains optimistic about the mid to long-term prospects of the automotive industry. Singhania emphasized the importance of addressing persistent supply bottlenecks and optimizing production lines to ensure consistent growth across all vehicle segments.

Looking ahead, factors such as the ongoing marriage season, anticipated agricultural income, and government infrastructure spending are expected to bolster consumer spending and stimulate market demand. Additionally, successful introductions of new models across segments are anticipated to further drive growth in the automotive industry post-elections.

As per data compiled by the Federation of Automobile Dealers Association (FADA) from the VAHAN portal of the Ministry of Road Transport and Highways (MoRTH), January witnessed a remarkable surge in vehicle registrations, reaching a total of 2,127,653 units. This figure marks a substantial increase from the 1,849,691 units registered during the same period last year. With rural markets showing signs of recovery, vehicle retailers are optimistic about sustaining this momentum in the upcoming months. FADA President Manish Raj Singhania expressed positivity, stating that the year commenced on a strong note, with retail sales witnessing growth across various categories last month. The two-wheeler segment notably witnessed a 15% increase in sales, reaching 1,458,849 units, while three-wheeler sales surged by 37% to 97,675 units. Singhania attributed the steady demand for two-wheelers to the strength of the rural market, fueled by favorable government policies supporting agricultural activities. In the passenger vehicle segment, January set a new record with sales totaling 393,250 vehicles, surpassing the previous high set in November 2023. The demand for SUVs, combined with effective marketing strategies and consumer schemes, contributed to this achievement. However, Singhania highlighted concerns regarding high inventory levels, posing challenges for auto dealers. Tractor sales experienced a positive uptick, likely driven by optimism surrounding the Rabi crop output and favorable weather conditions for agricultural activities. Conversely, the commercial vehicle segment is expected to witness a slowdown in the fourth quarter due to a high base effect and upcoming elections. Despite short-term cautiousness due to the impending elections, FADA remains optimistic about the mid to long-term prospects of the automotive industry. Singhania emphasized the importance of addressing persistent supply bottlenecks and optimizing production lines to ensure consistent growth across all vehicle segments. Looking ahead, factors such as the ongoing marriage season, anticipated agricultural income, and government infrastructure spending are expected to bolster consumer spending and stimulate market demand. Additionally, successful introductions of new models across segments are anticipated to further drive growth in the automotive industry post-elections.