Modest growth of 3.14 % in retail sales, PVs dip 6 %, 2W & 3Wsoar: FADA - Business Guardian
Connect with us

Auto

Modest growth of 3.14 % in retail sales, PVs dip 6 %, 2W & 3Wsoar: FADA

Published

11:12 am IST

on

In FY24, auto retail sales saw sector-wide growth, leading to a 10 per cent yoy growth, with the 2W segment registering growth rate of 9 per cent, 3W segment growing by 49 per cent, PVs by 8.45 per cent, tractors by 8 per cent and commercial vehicles by 5 per cent respectively.

Despite election uncertainties, economic concerns and intense competition, the two wheeler and 3W segments showcased positive sentiment in March retail sales, especially in the premium and EV segments even as the Indian auto retail sector posted a modest growth of 3.14 per cent yoy in March 2024, with passenger vehicles sales showing a decline of 6 per cent, tractors showing a decline of 3 per cent and commercial vehicles facing a slump of 6 per cent respectively. However, in FY24, auto retail sales saw sector-wide growth, leading to a 10 per cent yoy growth, with the 2W segment registering growth rate of 9 per cent, 3W segment growing by 49 per cent, PVs by 8.45 per cent, tractors by 8 per cent and commercial vehicles by 5 per cent respectively, the Federation of Automobile Dealers Associations (FADA) said on Monday.

Heading into FY’25, FADA projects growth amidst a mix of optimism and challenges. The vehicle retail data of FADA for March’24 and FY’24 shows a surge in electric vehicle sales amidst expiration of the FAME 2 subsidy on 31 March with the 2W electric vehicles share jumping to 9.12 per cent for the first time. There was positive sentiment in 3W segment which demonstrated growth driven by the increasing acceptance of EVs, showing an optimistic trend despite potential challenges from election uncertainties and policy changes. Manish Raj Singhania, notes that the 2W segment demonstrated resilience and adaptability, with EV sales surging due to the expiration of the FAME 2 subsidy on March 31st. “This led to a notable boost in the 2W-EV market share to 9.12 per cent. “Positive market sentiment was supported by seasonal events, improved vehicle supply, and financial incentives. Despite facing market volatility and intense competition, the industry is strategically evolving, particularly in the premium and EV categories, signalling a bright future.” said Singhania.

In FY24, auto retail sales saw sector-wide growth, leading to a 10 per cent yoy growth, with the 2W segment registering growth rate of 9 per cent, 3W segment growing by 49 per cent, PVs by 8.45 per cent, tractors by 8 per cent and commercial vehicles by 5 per cent respectively. The 2W segment benefited by enhanced model availability, the introduction of new products and a positive market sentiment, alongside the burgeoning EV market and strategic premium segment launches. The growth in the 3W segment was driven by the introduction of cost-effective CNG fuel options, new EV models, expanding city landscapes, demand in last mile mobility in urban centres resulting in strong demand, marking a new industry benchmark. The PV segment’s growth was propelled by improved vehicle availability, a compelling model mix and significant contributions from the SUV segment, which now claims 50 per cent market share.

The auto is projecting an optimistic outlook in FY’25, focusing on new product launches, especially in EVs and leveraging economic growth, favourable government policies and expectation of good monsoon to fuel demand, despite facing challenges like competition and the need for strategic market engagement. The 3W segment showed an encouraging sales trend hitting an all-time high retail, driven by the growing acceptance of EVs. The introduction of EV autos and loaders positively impacted the retail environment. Although faced with election-related uncertainties and concerns over policy changes, such as free bus travel for women, the overall outlook for the sector remains upbeat, supported by the quality of vehicles and strong market demand.

The PV sector encountered challenges, with a m-o-m decrease of 2 per cent and a yoy fall of 6 per cent The downturn was influenced by heavy discounting and selective financing further affected by economic worries and the electoral climate. Nonetheless, positives such as improved vehicle availability, increased stock levels and new model launches did stimulate demand in certain areas. The impact of election activities and changes in festival dates also played a role in sales dynamics. The near-term outlook of FADA notes concern over decline in consumer sentiment among urban Indians and warns that the automotive sector faces a nuanced challenge. Given the continued inflationary trend without any relief in finance rates, these prospective buyers may continue to hesitate. Heading into FY’25, the auto industry is poised for growth amidst a mix of optimism and challenges.

The excitement around new product launches, particularly electric vehicles, sets a forward-looking tone. Manufacturers are gearing up with better supply chains and an array of models to meet diverse consumer demands. Economic growth, favourable government policies and an anticipated good monsoon are expected to fuel demand, especially in rural areas and the commercial vehicle sector, which is closely linked to infrastructure projects and economic activity.

Related Topics:

The Daily Guardian is now on Telegram. Click here to join our channel (@thedailyguardian) and stay updated with the latest headlines.

For the latest news Download The Daily Guardian App.

Auto

India’s PV sales in April grow modestly by 1.3 per cent at 3.36 lakh units

Published

6 months ago

on

May 15, 2024

By

India’s wholesales of passenger cars in April registered a marginal growth of 1.3 per cent with 3.36 lakh units, as compared to April 2023 and yet continuing the highest ever monthly sales trend driven by positive consumer sentiments and festivities in this month. Sales of PVs were 3,31 lakh units in the corresponding month last year, the Society of Indian Automobile Manufacturers (SIAM) reported on Tuesday.

The total sales of all categories put together was approximately 25 per cent to 21,36,157 units during the month as compared with 17,12,812 units in April 2023, the SIAM monthly report showed. Vinod Aggarwal, President, SIAM feels 2024-25 has started on a reasonably good note for the auto industry, as all the segments have posted growth in April 2024. “Above normal monsoon rainfall, policy continuity post-elections and Government’s push on manufacturing and infrastructure would propel the overall economic growth which would help in continuing the auto sector’s growth trajectory,” said Aggarwal.

Continuing with the trends of Q4 of 2023-24, two-wheelers reported significant yoy growth of 30.8 per cent in April 2024, compared to April 2023, posting sales of about 17.51 lakh units. Two-wheeler sales in April 2023 were 13,38,588 units. The SIAM data shows motorcycle sales grew by 34.4 per cent y-o-y to 11,28,192 units as compared with 8,39,274 units in April 2023. Similarly, scooter sales grew by 25.2 per cent y-o-y to 5,81,277 units as against 4,64,389 units in the same month last year.

The three-wheeler segment also reported sales of about 0.49 lakh units, with a growth of 14.5 per cent in April 2024, compared to April 2023. Three-wheeler sales in the domestic market were 49,116 units in April 2024. The total production of passenger vehicles, three-wheelers, two-wheelers and quadricycle in April 2024 was 23,58,041 units.

Continue Reading

Auto

Tata Motors marks 9,00,000th vehicle rollout from Lucknow facility

Published

7 months ago

on

May 9, 2024

By

The rollout of the 9,00,000th vehicle from the Lucknow facility is an important milestone as the facility has been pivotal in the manufacturing of advanced electric buses and has successfully delivered over 1200 units, which have cumulatively clocked lakhs of kilometers across the country.

Tata Motors, India’s largest commercial vehicle manufacturer, recently celebrated a significant achievement with the rollout of its 900,000th vehicle from the state-of-the-art Lucknow facility. Spanning 600 acres, this facility underscores Tata Motors’ dedication to sustainable manufacturing practices and has been acknowledged by the industry as a water-positive plant.

The Lucknow facility boasts a 6MW solar power plant, which has substantially reduced its carbon footprint. It features cutting-edge vehicle manufacturing stations, including a robotic paint booth and a body-in-white shop equipped with robotic spot welding technology, among other advanced capabilities.

Established in 1992, this facility has been instrumental in producing cargo and passenger commercial vehicles, ranging from light to heavy categories, alongside electric and fuel cell electric buses. Durga Shanker Mishra, Chief Secretary of Uttar Pradesh, lauded Tata Motors during the rollout ceremony for its role in advancing safer, greener mobility solutions and promoting women’s empowerment, with over 22% of new hires this year being women—a significant achievement for gender diversity in the manufacturing sector.

The rollout of the 900,000th vehicle is particularly noteworthy because the Lucknow facility has been pivotal in manufacturing advanced electric buses. To date, it has delivered over 1200 units, which have collectively traveled extensive distances across the country. Vishal Badshah, Vice President and Head of Operations for Tata Motors Commercial Vehicles, highlighted the importance of Uttar Pradesh as a key market and credited the state government’s infrastructure development initiatives for bolstering commercial vehicle sales. He emphasized the facility’s commitment to industry 4.0 integration, enabling the delivery of safe, smart, and sustainable mobility solutions to customers.

Tata Motors is also setting a benchmark in gender inclusivity and women’s empowerment at the Lucknow facility, with women constituting one-third of the technical workforce. They actively participate in all operational shifts, showcasing a diverse range of skills across the production of trucks and buses, demonstrating Tata Motors’ commitment to fostering a diverse and inclusive workplace.

Continue Reading

Auto

Retail sales grow 27 % yoy in April, PVs up 16 %, 2W by 33 %: FADA

Published

7 months ago

on

May 9, 2024

By

In the PV segment, new model launches and favourable monsoon forecasts are set to stimulate customer interest, while bulk deals in CV segment should bolster demand in sectors like iron ore, steel, and cement.

Amid favorable market sentiment driven by stable fuel prices, positive monsoon outlook, festive demand, and the marriage season, the Indian auto retail sector achieved a robust 27 per cent year-on-year growth in April 2024, even as the industry remains cautiously optimistic due to rising interest in new models, election-related uncertainty, and financial challenges which are now crucial to navigate the evolving market, says the Federation of Automobile Dealers Associations (FADA) on Wednesday.

The FADA vehicle retail data for April 2024 shows that on a year-on-year basis, retail sales of passenger vehicles grew 16 per cent, two-wheelers (2W) were up by 33 per cent, three-wheelers (3W) increased by 9 per cent, tractors grew by 1 per cent, and commercial vehicles experienced a modest 2 per cent growth. “The combined March-April period shows 14 per cent year-on-year,” says FADA President Manish Raj Singhania. “While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant,” adds Singhania.

The FADA outlook for May 2024 is shaped by several positive indicators. Improved vehicle supply and strategic planning in the 2W segment have led to rising customer bookings and better market sentiment, driven by favorable crop yields. In the PV segment, new model launches and favorable monsoon forecasts are set to stimulate customer interest, while bulk deals in the CV segment should bolster demand in sectors like iron ore, steel, and cement.

According to Nomura, vehicle registration (according to Vahan) is up sharply in April with 2Ws up 33 per cent year-on-year and PVs up 17 per cent year-on-year, benefiting from Navratra and a higher number of marriage dates as highlighted earlier. In EVs, 2W EV retail sales share declined month-on-month to 4 per cent (from 9 per cent in March ‘24) at 63,000 units, -6.4 per cent year-on-year, due to the pull forward of demand in March 2024 as subsidy was reduced in April. Ola’s market share increased to 52 per cent from 37 per cent in March ‘24 while Ather/TVS saw a 600 basis point decline month-on-month each.

The auto industry, according to FADA, faces various challenges ranging from limited financing options, overcapacity, and the extreme summer season. The overcapacity in the CV segment and rising temperatures could further slow growth, warns FADA. Election uncertainty continues to affect market sentiment, delaying customer conversions and stalling purchasing decisions. The industry thus remains cautiously optimistic about its near-term outlook.

Market opportunities exist with rising customer interest in new models. However, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively.

The apex body representing the interests of India’s auto retail sector has teamed up with Frost & Sullivan to spearhead an ambitious customer experience index (CEI), a quantitative research to assess customer satisfaction and customer experience. The survey looks to understand and quantify customer satisfaction focusing on their journey in sales, after-sales service, and product quality in the passenger vehicle category, to assess key drivers of satisfaction and quantum of their contribution to satisfaction and to determine the key barriers of satisfaction and identify the areas of improvement.

The comprehensive study will target the passenger vehicle category, including hatchbacks, sedans, SUVs/MPVs, EVs, and luxury vehicles, utilizing a detailed questionnaire to capture insights from 8,000 participants across 26 cities. This includes seven metropolitan areas, 16 tier-2 cities, and three tier-3 locations, ensuring a broad and inclusive data set that spans the diverse Indian landscape.

The results, which will provide invaluable insights for the entire automotive ecosystem, are expected in September 2024. The respondent’s profile includes males and females aged 18 years onwards, who are key purchase decision-makers for the primary vehicle and must be a primary user (only personal usage) of a personally owned vehicle. The other criteria are that the primary vehicle must be ‘new’ when purchased (excluding pre-owned, leased, rented) and purchased from an authorized dealer.

The initiative comes at a critical juncture, poised for significant growth amidst changing consumer behaviors and technological innovation, says Vinkesh Gulati, Chairman of FADA’s Research & Academy. The survey is designed to systematically harness customer feedback across a wide demographic, something that has not been undertaken at this scale in our industry before. By integrating detailed assessments of sales, after-sales, and product quality experiences from various vehicle categories, FADA aims to provide OEMs and dealers with the insights necessary to elevate their service standards and product offerings.

Continue Reading

Auto

FADA, Frost & Sullivan survey to aid auto sector with customer insights

Published

7 months ago

on

May 8, 2024

By

The Federation of Automobile Dealers Associations (FADA), representing India’s Automobile Retail Sector, has partnered with Frost & Sullivan to lead an ambitious initiative known as the Customer Experience Index (CEI). This quantitative research aims to evaluate customer satisfaction and experience comprehensively.

The survey is designed to analyze and quantify customer satisfaction across various aspects including the sales process, after-sales service, and product quality within the passenger vehicle category. It seeks to identify the primary drivers of satisfaction, their impact on overall satisfaction levels, pinpoint barriers to satisfaction, and highlight areas for improvement. The comprehensive study will target passenger vehicle category, including hatchbacks, sedans, SUVs/MPVs, EVs and luxury vehicles, utilising a detailed questionnaire to capture insights from 8,000 participants across 26 cities.

This includes seven metropolitan areas, 16 tier-2 cities and three tier-3 locations, ensuring a broad and inclusive data set that spans the diverse Indian landscape.

The results, which will provide invaluable insights for the entire automotive ecosystem, are expected in September 2024. The respondent’s profile includes males and females aged 18 years onwards, who are key purchase decision makers for the primary vehicle and must be a primary user (only personal usage) of a personally owned vehicle. The other criteria is that primary vehicle must be ‘new’ when purchased (exclude, preowned, leased, rented) and purchased from an authorized dealer.

The initiative comes at a critical juncture, poised for significant growth amidst changing consumer behaviours and technological innovation, says Vinkesh Gulati, Chairman of FADA’s Research & Academy. The survey is designed to systematically harness customer feedback across a wide demographic, something that has not been undertaken at this scale in our industry before. “By integrating detailed assessments of sales, after-sales and product quality experiences from various vehicle categories, we aim to provide OEMs and dealers with the insights necessary to elevate their service standards and product offerings,” explains Gulati.

Aroop Zutshi, Global Managing Partner at Frost & Sullivan agrees that the CIE will be a powerful tool for all OEMS and the dealer fraternity to leverage. “India is poised to witness exponential growth in the automotive industry driven by the rising middle-income and youth population, adoption of electric vehicles, increased investment in the Indian automotive industry and Government policy impetus,” says Zutshi.

The insights garnered from this expansive survey will directly inform and refine OEM strategies, facilitating tailored customer experiences that foster brand loyalty and satisfaction. In the last three years, FADA has conducted the Dealer Satisfaction Survey (DSS) and more recently introduced a specialized DSS focusing on finance and insurance. “By integrating this CIE survey, FADA aims to expand its coverage to include all aspects of the Indian automobile ecosystem. This move will provide a comprehensive perspective and strategic direction for all stakeholders while also allowing us to better understand and address the evolving needs of automobile consumers,” emphasized Manish Raj Singhania, President of FADA.

Continue Reading

Auto

Maruti Suzuki leads April sales with 1.68 lakh units, Hyundai exports up 58.8%

Published

7 months ago

on

May 2, 2024

By

Hyundai Motor India registered total sales of 63701 units in April 2024, a 9.5 per cent growth year-on-year with domestic sales at 50201 units, driven by SUVs which contributed 67 per cent of HMI domestic sales. Exports at 13,500 units grew 58.8 per cent yoy. Tarun Garg, COO, Hyundai Motor India points out that April 2024 marked fourth consecutive month of 50,000 plus units in domestic sales during calendar year 2024 driven by models like the CRETA, VENUE and EXTER. Honda Cars India (HCIL), registered total sales of 10,867 units in April 2024 as compared to 7,676 units in the same month last year. The company registered 4,351 units in domestic sales and 6,516 units in exports in the month of April’24.

Kunal Behl, Vice President, Marketing & Sales points out that the planned production volumes in April were lower due to switchover of Elevate and City production to six-airbag standard variants. “The dispatches were aligned accordingly. On the other hand, export of Elevate continues to significantly boost HCIL export volume which grew by 175 per cent over same period last year,” says Behl. The company had registered 5,313 units in domestic sales and exported 2,363 units in April’ 23. Maruti Suzuki India sold 1,68,089 units in April 2024, including domestic sales of 140,448 passenger vehicles and light commercial vehicles, sales to other OEM of 5,481 units and exports of 22,160 units.

The total sales in April 2024 was an increase of 4.7 per cent compared with the year-ago period. The company’s exports grew 30.6 per cent. as against 1,39,519 units in the corresponding period a year ago. The car maker sold 1,39,519 units domestically in the corresponding period a year ago, showing 0.7 per cent growth in April 2024. The company also announced the commencement of pre-bookings for the highly anticipated 4th generation Epic New Swift for INR 11,000. Partho Banerjee, Senior Executive Officer, Marketing & Sales points out that the Swift has been an iconic brand for Maruti Suzuki, with 29 lakh strong customer base. “The Epic New Swift stays true to its much-loved sporty DNA, while balancing new-age expectations of environment friendliness with low emissions.

The next-generation Swift is all set to create new benchmarks in the premium hatchback segment,” says Banerjee. Tata Motors Limited sales in the domestic and international market for April 2024 stood at 77,521 vehicles, compared to 69,599 units during April 2023, rising 11.5 per cent year-on-year as compared with 69,599 units in April 2023. The company’s total domestic dispatches rose 12 per cent to 76,399 units last month as against 68,514 units in April 2023. Domestic sale of MH&ICV in April 2024, including trucks and buses, stood at 12,722 units, compared to 8,985 units in April 2023 while total sales for MH&ICV domestic and international business in April 2024, including trucks and buses, stood at 13,218 units compared to 9,515 units in April 2023.

Toyota Kirloskar Motor (TKM) sold 20,494 units in the month of April 2024, representing a yoy growth of 32 per cent, as compared to April 2023, where the company sold 15,510 units. The growth momentum was sustained despite a weeklong maintenance shutdown from April 06-14, 2024, for upkeep of machinery and equipment to sustain operational efficiencies, productivity and safety. In the current month, domestic sales accounted for 18,700 units while exports totalled to 1,794 units during the same month. Chennai based TVS Motor Company registered a growth of 25 per cent with sales increasing from 306,224 units in April 2023 to 383,615 units in April 2024.

Total two-wheelers registered a growth of 27 per cent with sales increasing from 294,786 units in the month of April 2023 to 374,592 units in April 2024. Domestic two-wheeler registered growth of 29 per cent with sales increasing from 232,956 units in April 2023 to 301,449 units in April 2024. Motorcycle registered a growth of 24 per cent with sales increasing from 152,365 units in April 2023 to 188,110 units in April 2024. Scooter registered a growth of 34 per cent with sales increasing from 107,496 units in April 2023 to 144,126 units in April 2024.

The company recorded electric vehicles sales of 17,403 units in April 2024, indicating continued robust demand. Electric vehicle sales last year in April 2023 were at 6,227 units. The Company’s total exports registered a growth of 12 per cent with sales increasing from 71,663 units in April 2023 to 80,508 units in April 2024.

Continue Reading

Auto

Mahindra launches XUV 3XO compact SUV at Rs 7.49 lakh

Published

7 months ago

on

May 1, 2024

By

Mahindra & Mahindra unveils the XUV 3XO, a compact SUV redefining benchmarks with its bold design, premium features, and high-performance engines.

Mahindra & Mahindra, India’s leading SUV manufacturer, on Monday launched the XUV 3XO, with prices starting from Rs 7.49 lakh, setting new benchmarks in the compact SUV segment. Combining standout design, premium interiors, comfortable ride, cutting-edge technology, thrilling performance and unmatched safety, XUV 3XO was conceptualised at the Mahindra India Design Studio (MIDS) in Mumbai, and engineered and developed at the Mahindra Research Valley (MRV) near Chennai.

The XUV 3XO’s bookings will open online and simultaneously at Mahindra dealerships from May 15, 2024. The deliveries of the XUV 3XO will commence starting from 26 May, 2024. The XUV 3XO represents the world-class capabilities of Mahindra’s global design and engineering team. Built at Mahindra’s state-of-the-art facility in Nashik using advanced manufacturing processes, it offers customers a high-quality SUV that is robust and engineered to last. Veejay Nakra, President – Automotive Division calls the launch of the XUV 3XO, starting at an attractive price of Rs 7.49 lakh as redefining what an SUV can be. The XUV 3XO is designed to cater to a broad spectrum of customers – from those upgrading from a hatchback to their first SUV to luxury seekers looking for high-end features at a competitive price, the XUV 3XO offers a unique blend of innovation, safety, comfort, and performance. Each variant is a strategic response to the nuanced needs of different customer segments, effectively making each variant a disruptor in its segment.

The XUV 3XO introduces a bold, athletic silhouette that commands attention. It features a distinctive front fascia with a piano black finish on the grille and LED headlamps, LED DRLs and LED fog lamps. At the rear, the infinity LED tail lamp emphasises the wide and stable stance of the XUV 3XO. The interiors complement its striking exterior with a blend of premiumness and modernity. Its cabin boasts premium Ivory colour interiors with a Soft touch leatherette dashboard that extends to the door trims, and leatherette seat upholstery to elevate the sense of sophistication. Leather accents on the steering wheel, gear knob, and front armrest further enhance the premium feel. The SUV’s bold wheel arches and large tyres underscore its ruggedness, with the largest tyre outside diameter (OD) in its class, contributing to a formidable stance.

The impressive ground clearance, calibrated approach and departure angles, and best-in-class water wading depth amplify the XUV 3XO’s SUVness factor. Complementing these features are the segment leading R17 diamond cut alloy wheels, which further accentuate its authoritative presence. The XUV 3XO is powered by a lineup of world-class Turbo engines designed for exhilarating performance and superior efficiency. Both the mStallion TGDi and the Turbo Diesel engines churn out best-in-class power and torque of 96 kW (130 PS) & 230 Nm and 85.8 kW (117 PS) & 300 Nm respectively.

Additionally, the mStallion TGDi clocks 0-60 km/h in 4.5 s while offering a segment best fuel efficiency of 20.1 km/l* with manual transmission. Built on a durable, well-tested platform, it is engineered to meet the highest global safety standards, including the B-NCAP and meets the benchmarks established by the XUV700.

With superior drivetrain options, robust Level 2 ADAS features, a comprehensive suite of safety equipment, and advanced technological enhancements, the XUV 3XO is crafted to deliver a driving experience that’s exhilarating, secure, and ahead of its class. The XUV 3XO has been designed, developed, and engineered to meet rigorous global standards, ensuring that it delivers exceptional quality and performance to our customers.

Continue Reading

Trending