By Priya Singh
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Updated On: 13-Feb-2024 07:31 AM
The Federation of Automobile Dealers Associations (FADA) announces a promising start to the year with a robust 15% growth across various vehicle categories.
As per the FADA sales report, the three-wheeler segment has emerged as a standout performer, showcasing an impressive surge in sales with a remarkable growth rate of 36.94%.
The commercial vehicles segment experienced modest Year-on-Year growth of 0.1% in January 2024.
FADA, the Federation of Automobile Dealers Association has shared the commercial vehicle sales data for January 2024. The Federation of Automobile Dealers Associations (FADA) announces a promising start to the year with a robust 15% growth across various vehicle categories. Two-wheelers (2W), three-wheelers (3W), passenger vehicles (PV), tractors, and commercial vehicles (CV) exhibit significant growth.
The commercial vehicles segment experienced modest Year-on-Year growth of 0.1% in January 2024. According to the latest FADA Sales Report, combined CV sales reached 89,208 units compared to 89,106 units sold in January 2023.
| CATEGORY | Jan ’24 | Jan ’23 | YoY % | Dec ’23 | MoM % |
|---|---|---|---|---|---|
| Three-wheelers | 97,675 | 71,325 | 36.94% | 95,449 | 2.33% |
| E-RICKSHAW(P) | 40,526 | 29,955 | 35.29% | 45,108 | -10.16% |
| E-RICKSHAW WITH CART (G) | 3,739 | 1,990 | 87.89% | 3,688 | 1.38% |
| THREE WHEELER (GOODS) | 10,163 | 7,870 | 29.14% | 9,048 | 12.32% |
| THREE WHEELER (PASSENGER) | 43,188 | 31,455 | 37.30% | 37,522 | 15.10% |
| THREE WHEELER (PERSONAL) | 59 | 55 | 7.27% | 83 | -28.92% |
The three-wheeler segment has emerged as a standout performer, showcasing an impressive increase in sales with a remarkable growth rate of 36.94%. In January 2024, it sold 97,675 units compared to 71,325 units in January 2023.
E-Rickshaw (Passenger) Segment
Under the E-Rickshaw segment, a sales growth of 35.29% in retail was observed in January 2024. The segment sold 40,526 units compared to 29,955 in January 2023.
E-rickshaw with Cart Segment
The E-Rickshaw with Cart segment saw an 87.89% hike in its retail sales for January 2024. It sold 3,739 units in January 2024 compared to 1,990 in January 2023.
Three-Wheeler (Goods) Segment
The Three-Wheeler (Goods) segment saw a growth of 29.14% in January 2024. It sold 10,163 units in January 2024 compared to 7,870 in January 2023.
Three-Wheeler Passenger Vehicle Segment
The Three-Wheeler Passenger Vehicle segment registered a major retail sales growth of 37.30% in January 2024. It sold 43,188 units compared to 31,455 in January 2023.
Personal Three-Wheeler Sales Rise
The Personal Three-Wheeler segment saw a 7.27% sales rise in its retail sales in January 2024. The segment sold 59 units compared to 55 units in January 2023.
Also Read: Electric Three-wheeler Sales Report: YC Electric Emerges as Top Choice for E-Rickshaws
| CATEGORY | Jan ’24 | Jan ’23 | YoY % | Dec ’23 | MoM % |
|---|---|---|---|---|---|
| Commercial vehicles | 89,208 | 89,106 | 0.11% | 73,896 | 20.72% |
| LCV | 49,835 | 52,892 | -5.78% | 41,804 | 19.21% |
| MCV | 5,454 | 4,874 | 11.90% | 4,808 | 13.44% |
| HCV | 29,179 | 28,479 | 2.46% | 23,050 | 26.59% |
| Others | 4,740 | 2,861 | 65.68% | 4,234 | 11.95% |
LCV Segment
The light commercial vehicle (LCV) segment witnessed a marginal decline in retail sales in January 2024 with a decline of -5.78%. Total sales reached 49,835 units for this category which were previously at 52,892 units in January 2023.
MCV Segment
The Medium Commercial Vehicle (MCV) category saw a notable growth of 11.90%, selling 5,454 units in January 2024 compared to 4,874 units in January 2023.
HCV Segment
In the Heavy Commercial Vehicle (HCV) segment, there was a modest sales growth of 2.46% in January 2024, selling 29,179 units compared to 28,479 in January 2023.
Others Segment
All remaining segments of the CV category collectively sold 4,740 units in January 2024, showing a significant sales growth of 65.68% from 2,861 units in January 2023.
Factors Promoting Growth
Several factors are contributing to the growth of the commercial vehicle (CV) sector. Firstly, demand drivers such as the ongoing marriage season and anticipated income from agricultural sales are boosting consumer spending, particularly in the two-wheeler (2W) segment.
Additionally, the momentum of new launches across all vehicle categories is enhancing market demand. Moreover, favourable policies post the Union Budget are expected to further drive growth in the CV sector, particularly within infrastructure-related industries.
Furthermore, the government's optimistic crop production estimates and continued support measures are likely to bolster the rural economy, potentially leading to increased demand for tractors and entry-level 2Ws in rural areas. These combined factors create a conducive environment for the growth of the commercial vehicle market.
Challenges and Market Complexities
Market Uncertainty: The anticipation of upcoming elections might make consumers more careful about their spending habits when it comes to buying vehicles.
Supply Constraints: Persistent supply bottlenecks for specific high-demand models pose a risk factor for consistent growth across 2W, CV, and PV segments, highlighting the need for OEM optimization of production lines.
Finance & Liquidity: Fluctuating market liquidity and the potential for tighter financing in the CV sector require a focus on consumer financing solutions to support overall sales.