FADA data suggests that the Indian auto sector garnered 20,29,541 units in February 2024 as against 17,94,866 units with a healthy growth of 13 per cent
In February 2024, the Indian auto sector witnessed a strong year-on-year growth of 13 per cent across all vehicle categories in terms of retail. Specifically, the two-wheeler, three-wheeler, passenger vehicle, tractor, and commercial vehicle categories recorded growth rates of 13 per cent, 24 per cent, 12 per cent, 11 per cent and 5 per cent respectively.
The two-wheeler market experienced a 13 per cent year-on-year growth, largely propelled by factors such as increased demand from the rural sector, rise in popularity of premium models and the strong performance of entry-level segments. It led the way with 14,39,523 units last month as against 12,71,073 units in February 2023.
In the three-wheeler sector, there was a notable 24 per cent year-on-year increase, with EVs accounting for 53 per cent of this growth, underscoring a shift towards Electric E-Rickshaws and an uptick in first-time users opting for e-mobility solutions. The segment recorded 94,918 units as against 76,619 units during the same period last year.
| CATEGORY | FEB’24 | FEB’23 | YoY % |
| 2W | 14,39,523 | 12,71,073 | 13.25% |
| 3W | 94,918 | 76,619 | 23.88% |
| E-RICKSHAW(P) | 36,579 | 30,736 | 19.01% |
| E-RICKSHAW WITH CART (G) | 4,435 | 2,446 | 81.32% |
| THREE-WHEELER (GOODS) | 10,768 | 8,305 | 29.66% |
| THREE-WHEELER (PASSENGER) | 43,065 | 35,076 | 22.78% |
| THREE-WHEELER (PERSONAL) | 71 | 56 | 26.79% |
| PV | 3,30,107 | 2,93,803 | 12.36% |
| TRAC | 76,626 | 69,034 | 11.00% |
| CV | 88,367 | 84,337 | 4.78% |
| LCV | 48,594 | 47,551 | 2.19% |
| MCV | 6,454 | 5,001 | 29.05% |
| HCV | 28,271 | 28,359 | -0.31% |
| Others | 5,048 | 3,426 | 47.34% |
| Total | 20,29,541 | 17,94,866 | 13.07% |
Source: FADA Research
The PV segment achieved a 12 per cent year-on-year growth, courtesy of its highest February sales figures ever, propelled by new product introductions and improved vehicle availability across dealerships. However, elevated inventory levels persist in the PV segment, remaining at 50 to 55 days, which is a cause for concern.
Consequently, OEMs are required to adjust production levels to alleviate dealer carrying costs. A total of 3,30,107 units of passenger cars sold last month as against 2,93,803 units but the MoM growth reduced by just over 16 per cent as 3,93,250 units were posted in January 2024. The commercial vehicle space, on the other hand, managed a 5 per cent growth on YoY basis.
The automotive sector faces a myriad of challenges, including the anticipation of elections potentially deferring purchases and supply constraints. Additionally, external factors like crop failures can also have a significant impact on market sentiment, adding further complexity. In the entire industry, only the HCV segment posted a negative growth of 0.31 per cent.