PV sales hit a new high after double-digit surge in March

Vehicle registrations, a proxy for retail sales, increased in double digits across most categories last month, capping off a financial year that witnessed record demand for cars, vans and SUVs.

Data available with the Federation of Automobile Dealers Associations (FADA) showed overall retail sales of vehicles increased 14% to 2,041,847 units in March.

Retail sales of passenger vehicles reached a record 3.6 million units in FY23, climbing 23% YoY. The previous high was in FY19, when retail sales were 3.2 million vehicles. "The (PV) segment experienced numerous new launches and better product availability due to the easing of the semiconductor shortage during the year," said FADA president Manish Raj Singhania. "The demand for higher-end variants helped sustain sales. However, the entry-level variant remains under pressure as customers in this category are still affected by high inflation."

In March, registration of two-wheelers, three-wheelers, passenger vehicles and commercial vehicles rose 12%, 69%, 14% and 10%, respectively. Sales of tractors expanded 4%.

Singhania said while sales of two-wheelers grew 12% to 1,445,867 units when compared with the same period last fiscal, the numbers were lower by 9% when compared with pre-Covid levels. Average inventory of two-wheelers in the channel ranges between 15 and 20 days.

"Rural India, which still has not performed, continues to remain under inflationary pressures," said Singhania. The three-wheeler segment saw record retail sales last month at 86,857 units.