India’s retail sales of three-wheelers in the first half of the ongoing financial year have reached 5.33 lakh units, up 65.66% compared to the previous year, according to data released by the Federation of Automobile Dealers Associations (FADA). The FADA stated that this retail number has exceeded the pre-Covid retail witnessed in H1FY19, which stood at 3.58 lakh units. Furthermore, the overall retail sales of vehicles in H1FY24 showed a growth of 8.84% YoY, with two-wheelers, commercial vehicles, and passenger vehicles posting growth rates of 7.03%, 3.25%, and 6.19% respectively.

Manish Raj Singhania, President of FADA, mentioned that the initial decline of 4% in April’s overall retails was just a reflection of the dynamic nature of the automotive market. However, this decline was followed by a story of gradual recovery and growth, culminating in a robust 20% YoY growth in September. Singhania expressed optimism for the upcoming festive season, stating that the FADA expects a season of growth and prosperity for the auto retail sector.

The retail sales of tractors in the first half of FY24 witnessed an annual increase of 14%, with a total of 4.44 lakh units sold. Tractor sales experienced some slowdown in the previous month but recorded record-high sales in H1FY24. This positive performance in tractor sales is of particular importance for India’s rural economy, as rural India forms almost two-thirds of the country’s population and accounts for 55% of the total two-wheeler sales and a significant portion of tractor purchases.

Earlier, FADA had highlighted the crossing of pre-pandemic levels by the two-wheeler retail sales in September, indicating a potential turnaround in the rural markets. However, tractor purchases fell by 10% in September, according to FADA data, and have mostly remained flat or lower since the start of fiscal 2024.

In September, the overall registrations for automobiles rose to 18.82 lakh units from 15.63 lakh units in the same month of the previous year.