Automobile retail sales rise 11% annually in 2023

Boosted by strong demand, automobile retail sales in India surged by 11% in 2023 compared to the previous year, hitting 2,38,67,990 units, according to FADA, the dealers' body.

Passenger vehicle sales clocked 38,60,268 units, marking an 11% increase from 2022's 34,89,953 units. Two-wheeler sales grew by 9%, reaching 1,70,61,112 units, while three-wheeler sales soared by 58% to 10,80,653 units.

Commercial vehicle sales saw an 8% rise to 9,94,330 units, and tractor sales reached 8,71,627 units, a 7% increase from the previous year.

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December 2023 saw a substantial 21% surge in overall automobile retail sales to 19,90,915 units compared to December 2022's 16,43,514 units. Passenger vehicle sales reached 2,93,005 units, a 3% increase year-on-year.

Two-wheeler sales experienced a remarkable 28% rise to 14,49,693 units in December 2023 compared to the same period in the previous year.

FADA gathered sales data from 1,355 out of 1,442 regional transport offices across the country. It forecasts growth in each sector for the upcoming year, anticipating product launches, stable market sentiments, and enhanced economic conditions to drive demand. Additionally, factors like lower fuel prices, agricultural payments, and an uptick in EV participation are expected to further fuel customer sentiment and demand. The commercial vehicle segment is poised for growth, buoyed by increased government spending, infrastructural projects, and the replacement of older vehicles.