In May, there was some relief for the Indian automobile industry from the Federation of Automobile Manufacturers Association (FADA). They said that the sales of various types of cars in this country increased by 10% last month. The list includes – passenger cars, two-wheelers and tractors. Compared to May 2022 (18,33,421 units), sales in May this year increased to 20,19,414 units.
Vehicle sales in India rose 10% in May
In May 2023, 2,98,973 vehicles were sold in the passenger vehicle segment. Whereas the previous year at the same time the sales amount was 2,86,523 units. As a result, a slight increase in sales of 4% was observed. Manish Raj Singhania, president of Federation of Automobile Dealers Association or FADA, said the backlog of orders has been delivered due to increased availability of vehicles. The demand has increased due to the launch of several new models.
A total of 14,93,234 units of two-wheelers were sold in India last month. Whereas in the same period a year ago, the sales volume was 13,65,924 units, showing a 9 percent growth in sales in May. In this context, Singhania said, “This year there was a huge demand for two-wheelers in May due to reduction in subsidy under FEM-II scheme from June to wedding season. Even rural areas of the country saw a sudden increase in declining sales.”
Meanwhile, sales of commercial vehicles increased by 7 percent to 71,433 units last month from 77,135 units in May last year. Whereas three-wheeler sales were 44,482 units a year ago, last month saw 79,433 units, a 79 percent increase in sales.
Besides, last month tractor sales in India were 70,739 units. Whereas 64,528 units were sold in May 2022. As a result, 10% increase in sales has been observed. FADA said the monetary policy committee of the country’s apex bank kept interest rates in line with expectations, which had a positive impact on vehicle sales. The organization also said that the tide has come in sales due to solving the supply-chain problem.
