New Delhi [India], May 4 : The new financial year 2023-24 kicked off on a relatively weaker note for retail vehicle sales in India as data showed they declined in the month of April.
April saw a four per cent decline in total retail vehicle sales.
Category-wise, two-wheelers and personal vehicle sales declined 7.30 per cent and 1.35 per cent to 1,229,911 units and 282,674 units, respectively, data released by the Federation of Automobile Dealers Associations showed.
On the other hand, sales in the three-wheelers and tractors segment rose 57.22 per cent and 1.48 per cent to 70,928 units and 55,835 units, respectively.
On the near-term outlook, FADA said the two-wheeler segment continues to face challenges, with entry-level vehicles attracting fewer buyers. The federation urged the GST Council to consider reducing tax on two-wheelers from 28 per cent to 18 per cent to help revive this vital segment which represents 75 per cent of total auto sales volume.
"On the other hand, the upcoming marriage season in May is expected to bring about a sales resurgence, driven by an increase in customer inquiries. Additionally, as electric vehicles (EVs) gain popularity, customers are increasingly considering transitioning from internal combustion engines (ICE) to EVs, which may temporarily delay purchasing decisions," FADA said.
The Commercial Vehicle (CV) segment is witnessing strong demand in the medium and heavy commercial vehicles segment, supported by robust infrastructure projects taking place nationwide.
"Unfavourable weather conditions persist in May, including untimely rains and hailstorms, causing crop damage in multiple states. This exacerbates concerns for farmers and may potentially impact entry-level 2-wheeler and passenger car sales," the federation said, maintaining a cautious stance for the month of May.
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