Improved car provide and strategic planning within the two-wheeler (2W) section have led to a rise in buyer bookings and beneficial crop yields have improved market sentiment, the Federation of Car Sellers Associations (FADA) stated on Wednesday.
Within the passenger car (PV) section, new mannequin launches and beneficial monsoon forecasts are set to stimulate buyer curiosity, whereas bulk offers within the industrial car (CV) section ought to bolster demand in sectors like iron ore, metal, and cement. The enchantment of recent electrical fashions and sustained demand for typical autos are doubtless to offer additional momentum, the trade physique stated.
Nevertheless, it added that regardless of these optimistic traits, challenges stay.
“Election uncertainty continues to have an effect on market sentiment, delaying buyer conversions and stalling buying choices. Monetary constraints, excessive temperatures, and overcapacity within the CV section might gradual progress, whereas heavy discounting within the PV section might influence profitability. Seasonal elements reminiscent of no marriage dates and a scarcity of main festive occasions may additionally affect demand,” Manish Raj Singhania, President, FADA stated.
Monsoon outlook
On month-to-month retail gross sales, FADA highlighted that the 2W section noticed notable progress as a result of improved provide and the rising demand for 125cc fashions. Constructive market sentiments, bolstered by secure gasoline costs, a beneficial monsoon outlook, pageant season demand and the wedding season, contributed to this rise. New mannequin launches additionally helped drive progress, regardless of some delays in provide. The 2W gross sales grew by 33.21 per cent year-on-year (YoY) to 16,43,510 items in April as in contrast with 12,33,763 items in April 2023.
The PV class additionally skilled double-digit YoY progress, supported by enhanced mannequin availability and beneficial market sentiment, significantly round festivals like Navratri and Gudi Padwa. Gross sales rose by 16 per cent YoY to three,35,123 items in the course of the month as in opposition to 2,89,056 items within the corresponding month final yr.
“Regardless of the sturdy bookings and buyer move, the excessive competitors, extra provide and discounting introduced challenges for sustained progress. Moreover, the dearth of recent fashions in some portfolios impacted market traction,” Singhania stated.
The CV section confirmed modest 2.31 per cent YoY progress in home retail gross sales to 90,707 items final month as in contrast with 88,663 items in the identical month a yr in the past.
Constructive momentum was present in bulk and company offers and faculty bus demand, although elections dampened sentiment, with prospects delaying enlargement plans. Restricted finance choices and regional challenges reminiscent of water shortage additional impacted efficiency, FADA stated.