Retail auto sales rose 16 per cent year-on-year to 17,75,424 units last month compared with 15,31,196 vehicles in February 2022 across segments. A change in onboard diagnostics to come into effect from April and the wedding season were the key drivers of growth. The sales, however, were lower than pre-Covid levels.
“Launch of models, continuously improving supply, coupled with a healthy booking-to-cancellation ratio and wedding bells kept the momentum going for the segment,” Manish Raj Singhania, president of the Federation of Automobile Dealers Associations, said in a statement.
Passenger vehicle retail sales rose 11 per cent to 2,87,182 units last month against 2,58,736 units in the year-ago period. Two-wheeler registrations rose 15 per cent last month to 12,67,233 units from 11,04,309 units a year ago.
“The two-wheeler category witnessed a growth of 15 per cent year-on-year but was down 14 per cent when compared with the pre-Covid month of February 2020,” Singhania said.
The change in OBD norms which comes into effect from April along with the marriage season kept the sales ticking. “Overall, high inflation and poor sentiment has kept customers at bay,” he noted.
Total commercial vehicle retail sales in February grew 17 per cent to 79,027 units compared with 67,391 units in the same month last year. It, however, remained 10 per cent down when compared with February 2020.
Three-wheeler retail sales witnessed a massive 81 per cent jump in registrations at 72,994 units compared with 40,224 units in February 2022. Similarly, tractor sales rose 14 per cent year-on-year to 68,988 units in February.
On the business outlook, Singhania noted that multiple festivals in the near-term are expected to push sales.
“On the flipside, India’s chief economic adviser said that urban demand recovery is taking place at a faster pace than rural. This along with a sharp slowdown in private consumption expenditure to a two-year low suggests a softening in household spending demand amid inflationary pressure as post Covid pentup demand starts to fade,” he added.