Vehicle sales register 21% growth in FY23

Vijay C Roy

Chandigarh, April 4

Led by record sales of two-wheelers, three-wheelers, passenger vehicles and commercial vehicles, overall vehicle sales registered a double-digit growth of 21% in 2022-23, as per the data of Federation of Automobile Dealers Associations (FADA). However, tractor sales grew only by 8%.

Passenger vehicle sales hit a record high by retailing 36 lakh units. The previous high was in 2018-19 when 32 lakh units were sold.

FADA president Manish Raj Singhania said, “FY23 was the first full year without any impact of Covid after a gap of two years. All categories, except for tractors, saw a double-digit growth, with two-wheelers, three-wheelers, passenger vehicles and commercial vehicles growing by 19%, 84%, 23%, and 33%, respectively.

Though the two-wheeler segment demonstrated year-on-year (YoY) growth, it is significantly below pre-pandemic levels, indicating that rural India is still bearing the burden of high inflationary costs. The segment fell to seven-year low with total sales of 1.59 crore units during the year. The electric vehicle (EV) penetration in this category was at 4.5%.

The three-wheeler category maintained its impressive growth of 84% YoY. Electrification in this category reached 52%, primarily driven by the e-rickshaw segment. The availability of finance, along with alternative fuels and state subsidies, have contributed to the growth of this segment.

The passenger vehicle segment witnessed various new launches and better product availability due to the easing of the semiconductor shortage during the year. The demand for high-end variants helped sustain sales. However, the entry-level variant remains under pressure as customers in this category are still affected by high inflation.

Tractors registered a single-digit growth of 8% YoY. Despite this, the segment clocked an all-time high sale of 8.27 lakh units, beating its previous high of 7.82 lakh units in FY21.