India’s retail automobile sales slip 5.3% in May as against April: FADA | Key points

India’s automobile sales have declined month-on-month (MoM) in May 2024, with the sharpest plunge seen in the passenger vehicles segment, as per the data shared by the Federation of Automobile Dealers’ Association (FADA) on June 10.

The total retail automobile sales during the month stood at 20.89 lakh units, which is 5.3% lower as compared to 22.06 lakh units sold in April 2024. However, the total sales climbed by 2.6% as compared to 20.36 lakh units sold in May 2023.

Two-wheelers, which account for the bulk of the monthly sales, dropped 6.61% MoM to 15.34 lakh units. In April 2024, 16.43 lakh units of two-wheelers were sold, according to FADA.

Year-on-year (YoY), however, two-wheeler sales increased 2.48% as compared to 14.97 lakh units sold in May 2023.

PV sales slump 9.5%

Passenger vehicle (PV) sales dropped 9.5% to 3.03 lakh units in May 2024, as compared to 3.35 lakh units in the preceding month of April. The sales also declined 1% YoY as against 3.06 lakh units sold in May 2023.

Commercial vehicle (CV) sales came in at 83,059 units in May 2024, down 8.4% as compared to 90,707 units sold last month. The CV sales, however, grew 4.07% YoY from 79,807 units sold in May 2023.

The FADA data pointed towards a monthly decline in sales in all major automobile categories. An exception, however, was the sale of tractors which jumped 23.74% MoM to 70,065 units. As compared to the past year, however, the tractor sales dropped 1.1%.

Near-term outlook

According to FADA, the industry remains cautiously optimistic. “Post-election stability and a continuity in the government are expected to boost infrastructure projects and economic activities,” the industry body said in the monthly report.

“Above-normal rains forecasted by the IMD should enhance rural demand and support economic activities. However, addressing extreme weather challenges, intense competition, and liquidity issues will be crucial for sustained market improvement,” it added.