Automobile industry witnesses poor sales number for August: FADA report

The Federation of Automobile Dealers Associations (FADA), in its latest data, has shown that passenger vehicle retail sales in India witnessed a 5% YoY decline in August 2024 on account of delayed customer purchases, poor consumer sentiment, and persistent heavy rains. The overall passenger vehicle (PV) registrations in August 2024 stood at 3,09,053 units, as compared to 3,23,720 units in August 2023.

According to the data, commercial vehicle registrations saw a 6% year-on-year dip in August, while tractor retail sales also witnessed a drop of 11% as compared to the year-ago period. Two-wheeler sales, however, increased 6% year-on-year to 13,38,237 units in August, as compared to 12,59,140 units in the same month last year, on the back of improved stock availability and the onset of the festive season.

It further stated that three-wheeler retail sales increased by 2% to 1,05,478 units in August 2024, compared to 1,03,782 units in the year-ago period. Overall registrations in August 2024 saw an increase of 3% year-on-year, at 18,91,499 units, as against 18,38,501 units in August last year.

FADA President, Mr. Manish Raj Singhania, commented on the auto retail performance for August 2024, stating, “In August, India witnessed 15.9% excess rainfall across the country, with northwest India seeing a surplus of 31.4%, 7.2% in the east and northeast, 17.2% in central India and a minor deficiency of 1.3% in the peninsular region. This monsoon season brought unpredictable weather, starting with extreme heat waves that delayed monsoons and transitioned into heavy rainfall, leading to flood-like conditions in several areas.