FADA Releases July’23 Vehicle Retail Data

• July’s Auto Retail Performance: Auto retail sales in July maintained a steady 10% YoY growth,

mirroring the previous month. Notably, all vehicle categories recorded positive figures: Two-
Wheelers (2W) at 8%, Three-Wheelers (3W) at 74%, Passenger Vehicles (PV) at 4%, Tractors

(Trac) at 21%, and Commercial Vehicles (CV) at 2%.

• Monthly Analysis Reveals Mixed Results: Despite the consistent YoY growth, the month-on-
month trend observed a 5% decline in retail sales. The exception was the 3W segment, which

grew by 9%, while categories like 2W, PV and Trac, registered reductions of 6%, 4%, 8%. CV
closed flat at -0.2%.
• Performance Versus Pre-COVID Levels: When compared with pre-COVID figures, overall retails
showed a 13% decline. The 2W segment grappled with a significant 23% dip, while CVs also
underperformed with a 4% contraction.
• Three-Wheeler Segment Shines: July was particularly commendable for the 3W category,
which registered an all-time high sale of 94,148 units, translating to a 74% YoY and 9% MoM
growth.
• Inventory Insights: The inventory for Passenger Vehicles has surpassed the 50-day mark and
currently hovers between 50-55 days, suggesting an inventory build-up in anticipation of the
forthcoming festive season.
• Agricultural Forecast: The Indian Meteorological Department (IMD) predicts below-average
rainfall in August. This raises potential apprehensions regarding reduced yields of kharif crops,
which could potentially dampen the immediate resurgence of rural demand.
• FADA’s Stance: While caution remains the operative word in the short term, FADA is hopeful
about retail growth prospects, especially with the festive season on the horizon.

7th August’23, New Delhi: The Federation of Automobile Dealers Associations (FADA) today released
Vehicle Retail Data for July’23.
July’23 Retails
Reflecting on July 2023, FADA President, Mr. Manish Raj Singhania said, “Auto retail grew 10% YoY in July,
mirroring last month’s trend. However, the MoM decline continued highlighting short-term slowdowns.
On a YoY basis, segments like 2W, 3W, PV, Tractor, and CV grew at rates of 8%, 74%, 4%, 21%, and 2%. On
MoM basis, except 3W’s 9% growth, other segments declined. Compared to pre-COVID figures, auto retail
decreased by -13%, with significant drops in 2W and CV at -23% and -4%.
3W hit record sales in July’23 at 94,148 units, a 74% YoY and 9% MoM increase, surpassing previous high
of March’23’s 86,857 units.
Despite challenges like heavy monsoons and a tilt towards EVs due to high fuel prices, 2W showed
resilience in July ’23, with increased demand and trust in reputable brands. The 3W segment’s record
numbers indicate industry potential and a growing EV interest. Yet, addressing issues like OEM support
and dealer engagement remains crucial.

PV sales in July ’23 were a mix of challenges and triumphs. The month saw a surge in orders and timely
OEM supplies, especially with the introduction of new products. However, severe monsoons and flood like
situations especially in North India, impacted sales. SUVs continued to remain a popular choice.
The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school
buses, challenges from erratic weather and high vehicle costs affected demand. However, infrastructure
project boosts remain a silver lining.”
Near Term Outlook
The automotive industry is poised for an intriguing August, marked by a blend of opportunities and
challenges. Across the board, there are common positive indicators echoing hope. The 2W sector expects
an uptick, driven by upcoming festivals, a harmonious supply-demand equilibrium and the rollout of new
models. The 3W category, too, is witnessing a surge in interest, particularly towards electric variants. In
the realm of CV, the anticipation of the festive season, the aftermath of a good monsoon and pent-up
demand set the stage for potential growth. Similarly, the PV segment is likely to benefit from festive
euphoria and new product introductions coupled with high demand in SUV category.
However, challenges loom on the horizon. The 2W segment’s entry-level category continues to be a cause
for concern. In the CV space, there are apprehensions regarding streamlined loan disbursements for
buyers. Inventory level in PV has breached 50 days mark in anticipation of upcoming festival season and
the slowdown in entry level car remains. A larger concern is the IMD’s projection of a below-average
rainfall in August, potentially leading to lower crop yields. This could impact the purchasing power,
especially in rural regions. While the industry has experienced a tepid trend over the past two months,
FADA remains watchful in the short term. Nonetheless, there’s optimism about a rise in retails as we
approach the festive season.
Key Findings from our Online Members Survey
• Inventory at the end of July’23
o Average inventory for Passenger Vehicles ranges from 50-55 days
o Average inventory for Two – Wheelers ranges from 20-22 days
• Liquidity
o Good 42.57%
o Neutral 38.55%
o Bad 18.88%
• Sentiment
o Good 44.58%
o Neutral 38.55%
o Bad 16.87
• Expectation from August
o Growth 59.84%
o Flat 30.52%
o De-growth 09.64%

Media Contact| Saharsh Damani | CEO | [email protected] | +91 99107 22552 3
FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS
804-805-806, Surya Kiran, 19, K G Marg
New Delhi – 110 001 (INDIA)
T +91 11 6630 4852, 2332 0095, 4153 1495
E [email protected]
CIN U74140DL2004PNL130324

Chart showing Vehicle Retail Data for July’23
All India Vehicle Retail Data for July’23
CATEGORY JULY’23 JULY’22 YoY % JUNE’23 MoM%
2W 12,28,139 11,35,566 8.15% 13,10,186 -6.26%
3W 94,148 54,000 74.35% 86,511 8.83%
E-RICKSHAW(P) 43,529 27,037 61.00% 39,042 11.49%
E-RICKSHAW WITH CART (G) 2,773 1,997 38.86% 2,877 -3.61%
THREE WHEELER (GOODS) 9,010 6,199 45.35% 8,342 8.01%
THREE WHEELER (PASSENGER) 38,761 18,728 106.97% 36,180 7.13%
THREE WHEELER (PERSONAL) 75 39 92.31% 70 7.14%
PV 2,84,064 2,73,055 4.03% 2,95,299 -3.80%
TRAC 90,765 74,977 21.06% 98,660 -8.00%
CV 73,065 71,619 2.02% 73,212 -0.20%
LCV 43,236 44,672 -3.21% 41,975 3.00%
MCV 6,182 5,329 16.01% 5,988 3.24%
HCV 20,581 19,691 4.52% 22,070 -6.75%
Others 3,066 1,927 59.11% 3,179 -3.55%
Total 17,70,181 16,09,217 10.00% 18,63,868 -5.03%
Source: FADA Research
Disclaimer:
1- The above numbers do not have figures from TS & LD.
2- Vehicle Retail Data has been collated as on 04.08.23 in collaboration with Ministry of Road Transport & Highways,
Government of India and has been gathered from 1,352 out of 1,438 RTOs.
3- Commercial Vehicle is subdivided in the following manner
a. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
b. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
c. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
d. Others – Construction Equipment Vehicles and others
4- 3-Wheeler is sub-divided in the following manner
a. E-Rickshaw – Passenger
b. E-Rickshaw – Goods
c. 3-Wheeler – Goods
d. 3-Wheeler – Passenger
e. 3-Wheeler – Personal