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Industry body the Federation of Automobile Dealers Associations (FADA) has said that automobile retail sales in India witnessed a 10 per cent annual growth in July 2023 driven by robust sales across passenger vehicles, two-wheelers and commercial vehicles. Total retail sales across segments rose to 17,70,181 units in July 2023, as compared to 16,09,217 units in July 2022.

FADA stated that passenger vehicle sales saw an increase of 4 per cent to 2,84,064 units in July 2023, as compared to 2,73,055 units in the year-ago period. Two-wheeler retail sales rose by 8 per cent to 12,28,139 in July, as against 11,35,566 units in the same period last year. Commercial vehicle retail sales saw a 2 per cent year-on-year jump in sales to 73,065 units, from 71,619 units in July 2022. Three-wheeler sales rose 74 per cent year-on-year, while tractor sales witnessed a healthy growth of 21 per cent in July 2023. 

Industry body remains cautious in terms of business outlook going ahead. While caution remains the operative word in the short term, it is hopeful about retail growth prospects, especially with the festive season on the horizon. The entry-level category in the two-wheeler segment continues to be a cause for concern. In the CV space, there are apprehensions regarding streamlined loan disbursements for buyers. Besides, inventory level in PV has breached the 50-days mark in anticipation of upcoming festival season and the slowdown in entry-level car vertical remains.