Guwahati: India's automotive retail sector witnessed a notable 9 percent growth in August, as reported by the Federation of Automobile Dealers Associations (FADA) on Tuesday.

However, when compared to pre-pandemic figures, this growth stood at a more modest 1 percent. In comparison to July, auto sales in the country increased by 3 percent.

The surge in sales was primarily attributed to the three-wheeler segment, which achieved a historic peak in August. 
A total of 99,907 three-wheelers were registered, marking a 66 percent increase over August 2022 and a 6 percent rise from July 2023.

On a year-on-year basis, all automotive segments experienced increased sales figures. Two-wheeler sales rose by 6 percent, passenger vehicle sales increased by 6.5 percent, tractor sales grew by 14 percent, and commercial vehicle sales saw a 3 percent uptick.

In comparison to July, all sectors demonstrated growth except for tractors, which experienced a decline of 19 percent.
However, the passenger vehicle (PV) segment faced a challenge as inventory levels exceeded the 60-day threshold, reaching an all-time high even before the commencement of the 42-day festive season.

Manish Raj Singhania, President of FADA, expressed concern, stating, "It is alarming that inventory levels have exceeded a 60-day supply for the first time, even before the onset of the Navratri-Diwali festivities—a trend that necessitates vigilant monitoring by PV OEMs."

"In the PV arena, improved vehicle supply, bolstered by expanded customer schemes, has maintained positive market dynamics. Despite such advances, supply chain bottlenecks persist, particularly in timely deliveries," Singhania added.

He also noted that the market responded positively to the introduction of new hybrid and CNG models but highlighted that a limited product range in popular segments like mid-size SUVs continues to hinder overall potential.

Taking a cautious approach to the near-term outlook, FADA expressed concerns that low rainfall may impact rural demand during the upcoming festive season.

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