Commercial Vehicle sales grow by 16% in February 2023

Retail sales of commercial vehicles increased by 17.27% year on year to 79,027 units in February this year.

According to the latest figures from the Federation of Automobile Dealers Association, retail vehicle sales grew 15.95% year on year (YoY) to 17,75,424 units in February of this year (FADA). Retail vehicle sales were 15,31,196 units in February 2022.

The increase in sales is fueled by the introduction of new models, continual supply improvement combined with a healthy booking-to-cancellation ratio, and the wedding season.

February'23 showed double-digit growth of 16% YoY but was still down by -8%, when compared to the pre-covid month of February 2020. All categories saw double-digit growth, with 2-wheelers, 3-wheelers, passenger vehicles, tractors, and commercial vehicles increasing by 15%, 81%, 11%, 14%, and 17% year on year, respectively.

Retail sales of commercial vehicles increased by 17.27% year on year to 79,027 units in February this year, compared to 79,027 units in the same month last year.

Tata Motors sold 30,280 units, taking the lead in commercial vehicle retail sales. In February, Mahindra and Mahindra Limited sold 18,845 vehicles, Ashok Leyland sold 13,331 vehicles, and Maruti Suzuki India sold 3,209 vehicles.

Singhania stated: "The commercial vehicle category grew 17% year on year, while it dipped - 10% when compared to the previous month of February 2020. During the month, walk-in inquiries increased. Aside from that, demand has increased owing to changes in OBD rules, which will result in price increases. Infrastructure spending by the government has been healthy. This also helps with sales."

Sales have increased in the last two months as chip shortages have decreased and automakers have introduced new models to meet demand ahead of the festival and wedding seasons. Nonetheless, rising interest rates and high inflation are considered depressants, with overall sales in February still below pre-Covid levels.

Changes in pollution standards beginning in April, which will cause vehicle prices to rise, as well as automakers launching promotional offers in the final month of the fiscal year, could help push sales up in March, according to FADA.

The industry association attributed the demand in March to a flurry of festivities, including the two-day festival of colors - Holi - and regional new year celebrations Ugadi and Gudi Padwa.