India’s automobile market reported two noteworthy achievements in the month of June. Three segments—three-wheelers, passenger vehicles (PVs), and tractors—reached their highest-ever sales for the month of June, the Federation of Automobile Dealers Associations (FADA) said. Secondly, the commercial vehicles segment surpassed pre-Covid levels (i.e., the corresponding month of 2019) for the first time. Mint looks into the top trends from FADA’s data released last week:
Hits and misses
Overall vehicle sales grew by 10% over June 2022, but declined sequentially. Two-wheelers took the biggest hit (12% drop since May 2023), and are also one segment that is still behind the pre-Covid level. In May, FADA had urged the Goods and Services Tax (GST) Council to lower the GST rate from 28% to 18% on two-wheelers to help revive the segment.
Tight race
After record high sales of 3.6 million in 2022-23, PVs have maintained their momentum in the new fiscal year. Maruti Suzuki continues to lead the market with over 40% share. The battle for the second spot continues between Hyundai Motor and Tata Motors.
Electric ‘shock’
Sales of electric two-wheelers reported their weakest year-on-year growth rate since June 2022, possibly as a result of the Centre’s decision to reduce the subsidy provided under the FAME-II scheme. Almost half of the states saw a year-on-year decline in the sales of electric two-wheelers in June, showed a Mint analysis of data from transport offices.
E-rickshaws surge
However, e-rickshaws did well, driving the overall three-wheeler segment up by 75% in June. Electric mobility has made rapid strides in this category owing to the government’s push in making public transport green. The segment is likely to do well in the near term, riding on favourable market response and rising demand, according to FADA.
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Updated: 12 Jul 2023, 12:27 AM IST