Summary:

According to FADA, India's automotive retail sales rose by 5% year-on-year in May, driven by weddings, harvest, and rural demand. Sales of two-wheelers increased by 7.3%, three-wheelers by 6.2%, and tractors by 2.7%, while construction and commercial vehicles declined by 6.3% and 3.7%, respectively. FADA noted that urban consumer sentiment may remain subdued due to global supply chain disruptions and geopolitical tensions. Passenger vehicle (PV) sales dropped 3.1% yearon-year and 13.6% month-on-month, alongside a rise in inventory levels. Maruti, Hyundai, and Tata Motors reported sales declines, whereas Mahindra saw a 26% increase, making it India’s secondlargest carmaker. Financing constraints impacted two-wheeler growth, though rural resilience remained strong. FADA expects June demand to be driven by monsoons and festivals, but financing challenges and OEM price hikes may limit further growth.

Source: IBEF

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