NEW DELHI, Jan 8 : Noting double-digit growth in auto sales in December 2023 across various segments, auto retail body Federation of Automobile Dealers Associations (FADA) on Monday said that SUVs saw strong demand in the passenger vehicle (PV) segment with extended waiting periods for key models.
“This surge was fuelled by aggressive year-end promotions and the introduction of new models,” FADA President Manish Raj Singhania said.
The trade body, however, flagged concern over high inventory levels, reflecting over-supply.
FADA said that the ongoing issue of high PV inventory remains a critical area for OEMs to address, emphasising the need for further moderation in inventory management.
The industry body said that December’23 was an overall good month for the auto retail, as total retails during the period saw a growth of 21% year-on-year.
“All categories closed in green, with 2W, 3W, PV, Trac and CV growing on a YoY basis by 28%, 36%, 3%, 0.2% and 1.3% respectively,” FADA said.
As per FADA data, the total auto retail stood at 19,90,915 units in December 2023 as against 16,43,514 units registering a growth of 21.14%.
Amid a surge in consumer sentiments, the auto retail body remains optimistic for 2024.
“Each sector within the auto retail industry is positioned for growth, navigating through the dynamic market conditions. Nonetheless, the pivotal role of meticulous supply and inventory management cannot be overstated. These elements will be key in fully leveraging the positive trends that the new Calendar Year promises,” it said. (UNI)
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