Indians are buying vehicles like never before. This year, the country has recorded an all-time high growth in vehicle retail sales. According to Federation of Automobile Dealers Associations (FADA) data, India sold 5,938,844 units of vehicles in Q3 2022, compared to 4,632,020 units during a year-ago period. That’s an impressive 28.2% YoY growth in auto retail sales during the third quarter.
India’s vehicle retail sales increased an impressive 25.7% YoY in November 2022, to a record 23,80,465 units.
While in September and October months, the country sold 14,64,001 and 20,94,378 units of vehicles, respectively. There was a significant 10.94% YoY and 47.6% YoY growth recorded during the same period.
What’s driving India’s vehicle retail sales in 2022?
India’s automobile retail sales in Q3 2022 were primarily driven by the festive and wedding season. There were some jaw-dropping offers and discounts on all kinds of vehicles between September and November due to Diwali, Navratri and other festivals. In addition, most Indians purchase either two or four-wheelers right before or after their weddings. This marks the beginning of their new family.
It is important to note that the Great Indian Wedding Season (from 14th November to 14th December) has boosted auto retail sales in India. This year, about 32 lakh weddings will be held across the country.
November 2022 has clocked highest retails in the history of Indian Automobile Industry with March’20 as an exception when retails were higher due to BS-4 to BS-6 transition, Manish Raj Singhania, FADA President, said.
Three Wheelers recorded the highest sales
India recorded a strong year-over-year growth in vehicle retail sales in Q3 2022, across all segments.
India sold a record-breaking 74,473 units of three-wheelers in November 2022, representing a whopping 80.3% YoY increase. Passenger E-Rickshaws accounted for approximately 45.6% of all three-wheeler sales in India last month. A record 33,971 units of Passenger E-Rickshaw were sold in the country, representing a massive 112.88% YoY increase. The electrification in the 3W segment continues at its highest pace.
For the last two years, the government has been pushing the adoption of electric vehicles in India.
The September and October months also recorded a strong 71.9% YoY and 65.9% YoY growth in three-wheeler sales in India, respectively. Three-wheeler sales in India peaked in Q3 2022, with 205,151 units sold and a 72.8% YoY increase.
India’s two-wheelers sales also jumped up an impressive 23.6% YoY, to 1,847,708 units in November. In Q3 2022, a whopping 4,434,575 or (over 44 lakh) units of 2W were sold in India, recording 27.9% YoY growth.
The sales of Passenger vehicles, Tractors and Commercial vehicles also grew at a notable rate of 23.7% YoY, 23.8% YoY and 25.7% YoY, respectively, in Q3 2022.
Now let’s understand how the demand for vehicles has increased in 2022, compared to the previous years.
The strong growth in India’s auto retail sales in Q3 2022 was led by the relaxing Covid norms in many countries. The restrictions on cross-country travel and shipments are lifted after nearly two years of Covid-19 lockdown. The lockdown restrictions during the pandemic made cross-country travel impossible for people. As a result, auto retail sales were down in both 2020 and 2021.
However, compared to the same duration in the pre-covid era (Q3 2019), the overall vehicle retail sales in India increased by a marginal 2.39% in Q3 2022. While the 2W segment is yet to attain the same growth – showed a dip of 2.12% – all other segments like 3W, PV, Tractor and CV grew 2.8%, 19.4%, 49.6% and 11.7% respectively.
