Buoyed by strong demand, retail car sales in India will reach 2,386,990 units in 2023, an 11% year-on-year increase, according to dealer association FADA.
Passenger car sales were recorded at 3,860,268 units, an 11% increase from 3,489,953 units in 2022. Two-wheeler sales increased by 9% to 17,061,112 units, while three-wheeler sales increased by 58% to 1,080,653 units.
Commercial vehicle sales increased by 8% to 994,330 units, and tractor sales increased by 7% to 871,627 units.
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Overall retail car sales in December 2023 were 19,900,915 units, a significant 21% increase compared to 1,643,514 units in December 2022. Passenger car sales totaled 293,005 units, an increase of 3% compared to the same period last year.
Motorcycle sales recorded a remarkable increase in December 2023 to 1,449,693 units, an increase of 28% year-on-year.
FADA collected sales data from 1,355 of the 1,442 local transportation departments nationwide. We forecast growth for each sector in the coming year, anticipating product launches, stable market sentiment, and improving economic conditions to drive demand. Furthermore, factors such as lower fuel prices, agricultural payments and increased participation in EVs are expected to further boost customer sentiment and demand. The commercial vehicle segment is poised for growth, boosted by increased government spending, infrastructure projects and replacement of older vehicles.