India`s automobile retail experiences YoY growth of 0.73% in June: FADA
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
The Federation of Automobile Dealers Associations (FADA) in its latest data has showed that India’s automobile retail experienced a modest a year-on-year (YoY) growth of just 0.73% in June 2024 owing to the delayed monsoon in certain parts of the country.
According to the data, while the two-wheeler (2W) and three-wheeler (3W) segments registered positive YoY growths of 4.66% and 5.1% respectively, other categories such as passenger vehicles (PV), tractors (Trac) and commercial vehicles (CV) saw declines of 6.7%, 28.3%, and 4.7% YoY, respectively. The two-wheeler (2W) category faced significant challenges, with a month-on-month (MoM) sales decline of 10.36%, despite a 4.66% YoY increase. Moreover, passenger vehicles (PV) and commercial vehicles (CV) sales fell by 7.18% and 12.42% MoM, reflecting poor market sentiment.
FADA has stated that June presented various challenges, including delayed monsoons, poor market sentiment and postponed purchases due to low demand and funding delays. The industry continues to face degrowth, impacted by high temperatures affecting the agricultural sector and infrastructural project slowdowns.
