New Delhi: Domestic auto sales logged 9% year-on-year growth in August 2023 on the back of robust demand across multiple segments, including two-wheelers and tractors, showed the vehicle retail data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday.
Total sales across various segments such as passenger vehicles (PV), two-wheelers (2W), three-wheelers (3W), and commercial vehicles (CV) stood at 18,18,647 in August 2023 as against 16,74,162 in August 2022.
In August, comprehensive year-on-year growth was observed across multiple segments: 2W at 6%, 3W at 66%, PV at 6.5%, Tractor at 14%, and CV at 3%.
Commenting on August data, FADA President Manish Raj Singhania said, “Auto retail in August witnessed a promising 9% YoY growth, maintaining momentum similar to the preceding month. Concurrently, a 3% month-on-month uptick suggests a reversal in short-term trends.”
The FADA data shows Maruti Suzuki remained the undisputed leader with a 42.37% market share in the domestic market, followed by Korean auto major Hyundai Motor India, which had a nearly 15% share. In the two-wheeler segment, Hero Motocorp occupied the top slot. Bajaj Auto remained the market leader in the three-wheeler segment in August 2023, while Tata Motors topped the chart in the commercial vehicle segment.
Sharing the near-term outlook for the auto sector, FADA said that the onset of the festive season, beginning with Onam, has uplifted market mood, improved liquidity, and eased earlier bottlenecks in the supply chain across all categories.
The auto retail body noted that the outlook remains cautiously optimistic, shaped by a multitude of factors that vary across vehicle segments.
“In the 2W market, while a broader range of models is now available, subdued rural demand due to insufficient rainfall could temper sales growth. For CVs, although bulk deals and the favourable timing of the construction season in September add to the optimism, the real sales momentum is anticipated to pick up during the Navratri and Deepawali festivals following the Shraadh period,” it said.
FADA further added, “The PV market, meanwhile, offers a mixed bag: new product launches and better stock availability are positive signs, but high customer discount expectations and the impact of the Shraadh period may act as small speed breakers.”