3-wheelers sales up by 66% (YoY) in H1FY24

In H1FY24, India’s three-wheelers industry experienced remarkable growth, highlighted by a 66% year-on-year surge in three-wheeler sales. This performance underscores the resilience and potential for expansion in the country’s automotive sector.

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In the first half of the ongoing financial year, all India retail sales of three-wheelers reached 5.33 lakh units, marking a substantial 65.66% annual increase, as reported by the Federation Of Automobile Dealers Associations (FADA). This figure exceeded the pre-Covid H1FY19 retail sales of 3.58 lakh units.

Overall vehicle retail sales in H1FY24 grew by 8.84% year-on-year, with two-wheelers, commercial vehicles, and passenger vehicles showing respective growth rates of 7.03%, 3.25%, and 6.19%.

Manish Raj Singhania, President of FADA, mentioned the 4% decline in April’s overall vehicle retail sales as a precursor to a story of gradual recovery and growth, culminating in a robust 20% year-on-year growth in September. FADA looks forward to a season of growth and prosperity with the upcoming festive season.

Tractor retail sales in the first half of FY24 witnessed a 14% annual increase, amounting to 4.44 lakh units. Although tractors experienced a slowdown in the last month, they achieved record-high sales in H1FY24, which may have positive implications for India’s rural economy. Rural India, constituting nearly two-thirds of the country’s population, accounts for 55% of total two-wheeler sales and a significant portion of tractor purchases.

FADA previously noted the retail sales of two-wheelers crossing pre-pandemic levels in September, potentially signaling a turnaround in rural markets. However, tractor purchases fell by 10% in September, as per FADA data, and have mostly remained stagnant or lower since the start of fiscal year 2024. In September, overall automobile registrations increased to 18.82 lakh units from 15.63 lakh units in the same month the previous year.