Three wheelers see record sales as auto sector posts 9% growth between April-September

• The 3W segment was the undisputed star of the H1 FY 2024 performance, with a remarkable 66% Y-o-Y growth.
  
• The passenger vehicle segment registered a 6% Y-o-Y growth and registered record breaking retail figures too.
  
• The two-wheeler (2W) segment is facing challenges and has yet to reach its peak sales when compared to pre-pandemic times.
  

Three wheeler sales in the first half of the current financial year (FY24) have hit a record and been the star performer for the auto sector. Overall, the Indian auto retail sector experienced a cautious yet optimistic six months. While April saw a modest 4% decline in overall vehicle retails, the subsequent months witnessed a gradual recovery and growth, culminating in a robust 20% year-on-year (Y-o-Y) growth in September, according to H1 FY 2024 Vehicle Retail Data by Federation of Automobile Dealers Associations (FADA).

This resilience and recovery was evident in the overall H1 FY24 performance, with total auto retail registering a 9% growth when compared to the same period a year before.

3W segment the star of the show

The 3 wheeler (3W) segment was the undisputed star, with a 66% Y-o-Y growth. This segment consistently registered strong sales figures month after month, retailing a record-breaking 5,33,353 units, outperforming the H1 FY 2019 figures of 3,58,187.

PV segment registers highest ever sales figures

The passenger vehicle (PV) segment, despite facing certain difficulties, presented a story of consistent recovery and expansion. It not only achieved a 6% Y-oY growth but also experienced record-breaking retail figures, with the first half of the fiscal year 2024 reaching 1,808,311 in PV retail sales, surpassing the prior record set in the first half of fiscal year 2023 at 1,702,905.

Chart showing All India Vehicle Retail Data for H1 FY 2024


Source: FADA Research

Says Manish Raj Singhania, president, FADA, “With the festive season on the horizon, bringing with it a promise of renewed consumer interest and potential demand surge, the FADA anticipates a season of growth and prosperity for the auto retail sector, moving from cautious optimism to a hopeful and positive outlook for the market.”

Tractors register record breaking sales despite a slowdown

Despite a recent slowdown, the sales of tractors have been part of this growth narrative. In the first half of fiscal year 2024, there were record-breaking retail sales of 444,340 units, showcasing a significant 14% Y-o-Y growth.

This performance not only signifies robust market demand but also surpasses the sales figures of the first half of fiscal year 2023, which stood at 389,815.

2W segment still facing challenges

In the commercial vehicle (CV) sector, sales have been robust, with 465,097 units sold, second only to the record set in the first half of fiscal year 2019 with 472,492 units.

However, the two-wheeler (2W) segment is facing challenges and has yet to reach its peak sales in the first half of fiscal year 2019, which stood at 9,727,200 units.