Total passenger car sales in January 2023 increased by 17.3% to 2.98 lakh units from 2.54 lakh units in the corresponding month of the previous year. The Society of Indian Automobile Manufacturers, a trade group, reports that sales of two-wheelers increased only modestly, by 3.8%, to 11.8 lakhs.
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According to Rajesh Menon, director general of SIAM, sales of passenger vehicles reached record highs in January and for the first time in 10 months, from April to January, they exceeded 3 million units sold. Sales of three-wheelers have picked up during the previous two years, but they have not yet reached pre-Covid levels.
According to SIAM data, the sales of this segment more than doubled in January, with a strong increase seen in sub-segments such as passenger cars and goods carriers and e-rickshaws. According to a press release from SIAM, the total number of vehicles sold in January 2023 was 15.3 lakh, up from 14.2 lakhs.
The Federation of Automobile Dealers Associations (FADA) stated that auto sales had not yet reached pre-pandemic levels in its January sales report that was released last week. According to the trade group, auto sales fell by 8% in January 2023 compared to January 2020.
According to Manish Raj Singhania, president of FADA, “although sentiments are slowly improving and are better than they were a year ago, the rural market has yet to fully join the party as cost of ownership has shot up dramatically but disposable income has not improved in the same ratio.” According to the Economic Survey 2022–23, rural earnings will increase at a consistent positive rate as inflation is predicted to moderate, resulting in an increase in real wages. According to FADA’s prognosis, “we are confident that this will have its rub-off impact with a boost in 2-wheeler sales moving forward.”
However, according to FADA, the PV segment increased by 8% from January 2023 to January 2020 when compared to pre-Covid levels. Although this market is being helped by strong demand, excellent bookings, and better supplies, Singhania noted that the entry-level sub-segment is still suffering.
