Anushruti Singh
The Federation of Automobile Dealers Associations (FADA) has unveiled the latest Vehicle Retail Data for April’24, revealing a robust 27% year-on-year growth in the Indian Auto Retail sector. However, amidst the positive figures, concerns loom large over the impact of ongoing elections on market sentiment and consumer behavior.
FADA President, Manish Raj Singhania, lauded the impressive growth figures but cautioned about the prevailing uncertainties. “In April 2024, the Indian Auto Retail sector witnessed significant growth across segments, attributing it partly to the shift in Navratri festivities to April from March last year,” Singhania remarked. He highlighted the 33% growth in the two-wheeler segment, driven by heightened demand for 125cc models and improved supply.
Positive market sentiments, stable fuel prices, and a promising monsoon outlook buoyed the industry, with passenger vehicle (PV) sales registering a double-digit year-on-year growth of 16%. Singhania emphasized the role of new model launches in driving growth despite supply chain disruptions.
However, challenges persist, with the commercial vehicle (CV) segment recording a modest 2% year-on-year growth and a slight month-on-month decline. Singhania pointed to election-related uncertainty dampening sentiment, resulting in delayed purchasing decisions and subdued expansion plans.
Looking ahead to May 2024, the industry anticipates continued growth, fueled by improved vehicle supply and strategic planning. New model launches in the PV segment and bulk deals in the CV segment are expected to drive demand. Yet, uncertainties surrounding the elections cast a shadow over the industry’s near-term outlook.
Election uncertainty, coupled with financial constraints and seasonal factors such as a lack of major festive events, pose significant challenges. Despite rising consumer interest in new models, the industry remains cautiously optimistic, emphasizing the need to monitor the evolving landscape closely.
As the auto industry navigates through these challenges, it remains poised to seize market opportunities while addressing key concerns to sustain growth in the dynamic Indian market.
