FADA: Commercial vehicle sales increased by 33% in March.

The Federation of Automobile Dealers' Association (FADA) issued vehicle data for March 23 and FY 23. According to the report, total vehicle retail increased by 14% year on year in March 2023, and FY23 was the first full year without the impact of Covid, with total retail increasing by 21% year on year.

Commercial vehicle sales increased by 33%, in March, and 10% year on year.

Three-wheeler Segment

The three-wheeler segment in India achieved a new retail sales record. This category grew steadily and reverted to pre-pandemic levels. The three-wheeler category maintained its amazing 84% growth rate, and electrification reached 52%, fueled by strong e-rickshaw sales.

According to the statistics report, the 3-wheeler category recorded record-high retail sales in March, exceeding the previous high figures of March 2020, when the industry switched from BS-4 to BS-6.

A sales rise of 31.06% was observed in goods carrier three-wheelers in March 2023. There were 8,043 units sold in March 2023, compared to 8,043 units in March 2022.

The Three-wheeler passenger segment experienced a 75.80% increase in sales. It sold 35,611 units in March 2023, compared to 20,257 in March 2022.

The Retail sales of e-rickshaw increased by 80.06% in March 2023. In March month of this year, 37,373 units were sold, up from 20,756 units in March 2022.

The sales of e-rickshaw with cart increased by 39.01% in March 2023. 3,250 units were sold in March 2023, up from 2,338 in March 2022.

Tractors segment

Except for tractors, all categories witnessed double-digit growth in March and for the whole year. Tractors, on the other hand, increased by 8% and 4% in a month and year, respectively.

| CATEGORY | MAR'23 | MAR'22 | YoY % (2022) ||--------------------------|-----------|-----------|--------------|| 3W | 86,857 | 51,483 | 68.71% || E-RICKSHAW (P) | 37,373 | 20,756 | 80.06% || E-RICKSHAW WITH CART (G) | 3,250 | 2,338 | 39.01% || 3W (GOODS) | 10,541 | 8,043 | 31.06% || 3-W (PASSENGER) | 35,611 | 20,257 | 75.80% || THREE WHEELER (PERSONAL) | 82 | 89 | -7.87% || PV | 3,35,266 | 2,93,016 | 14.42% || TRAC | 81,067 | 78,070 | 3.84% || CV | 92,790 | 84,124 | 10.30% || LCV | 49,745 | 50,200 | -0.91% || MCV | 6,050 | 5,116 | 18.26% || HCV | 33,119 | 26,247 | 26.18% || Others | 3,876 | 2,561 | 51.35% || Total | 20,41,847 | 17,92,802 | 13.89% |

Commercial Vehicles

As per the data, all CV sectors except for Light Commercial Vehicles showed rising sales trends. According to FADA commercial vehicle sales figures for March 2023, the CV industry is divided into three segments: LCV, MCV, and HCV.

LCV- It experienced a 0.91% decrease in sales in March 2023. It sold 49,745 units in March 2023, compared to 50,200 units in March 2022.

MCV- It experienced an 18.26% increase in retail sales in March 2023. It sold 6,050 units in March 2023, compared to 5,116 units in March 2022.

HCV- It reported a 26.18% increase in retail sales in March 2023. It sold 33,119 units in March 2023, compared to 26,247 units in March 2022.

According to the industry association, the outstanding sales observed in FY23 may not continue over to the current fiscal year. The fiscal year 2024 is predicted to experience moderate growth in the low single digits. This is due to a high starting point, inflationary pressures, routine price increases, and regulatory changes.

Recent unseasonal rains and hailstorms in North and Central India have devastated vital rabi crops and delayed harvesting, reducing rural sales. Even in FY23, two-wheeler and tractor sales numbers demonstrate that rural sales have been under pressure.