Early Times Report
JAMMU, Aug 6: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for July'24 for the UT of Jammu and Kashmir. The 2-Wheeler category witnessed a growth of 30.47% at 11,244 units in July 2024, as compared to 8,618 units in July 2023. The 3-Wheeler category witnessed a growth of 7.85% at 1,181 units in July 2024, as compared to 1,095 units in July 2023. The Commercial Vehicle category witnessed a growth of 12.15% at 960 units in July 2024, as compared to 856 units in July 2023.The Passenger Vehicle category witnessed a downfall of -11.74% at 5,317 units in July 2024, as compared to 6,024 units in July 2023. The Tractor Vehicle category witnessed a growth of 23.13% at 362 units in July 2024, as compared to 294 units in July 2023. In total the retail is 19,064 in JULY'24 compared to it is 16,887 in JULY'23 thereby registering a growth of 12.89%.
Sanjay Aggarwal, Chairperson Federation of Automobile Delears Associations Jammu said that Despite India's automobile retail sector saw a YoY growth of 13.84%, with almost all categories witnessing an increase. Two-wheelers (2W) grew by 17%, three-wheelers (3W) by 13%, passenger vehicles (PV) by 10% and commercial vehicles (CV) by 6%. Tractors, however, continued to underperform, falling by 12% YoY. The 2W segment experienced notable growth due to a thriving rural economy, positive monsoon effects, and government support programs enhancing rural incomes. The introduction of new products and better stock availability also contributed significantly, despite market slowdowns in certain regions, excessive rains, and increased competition. The segment also saw an increase in EV sales due to discounts and EMPS scheme deadline.
PV sales saw a robust 14% growth, driven by new model launches and attractive pricing strategies. Dealers reported benefits from good product availability, attractive schemes, and a wider range of products. Nonetheless, heavy rains, low consumer sentiment, and intense competition posed challenges. Some dealers managed to sustain sales through strong promotions and incremental discounts. Commenting on how July performed in UT of J & K, Mr Sanjay Aggarwal said, "All the categories showed a positive growth except PVs as compared to last year's July month. The 2-Wheeler category witnessed a growth of 30.47%, 3-Wheeler category witnessed a growth of 7.85%, Commercial Vehicle category witnessed a growth of 12.15%, Tractor Vehicle category witnessed a growth of 23.13%. However Passenger Vehicle category witnessed a downfall of -11.74%
Aggarwal said that, The near term outlook across the auto retail segments shows a blend of optimism and caution. 2W sales are expected to be buoyed by factors such as a growing rural economy, positive monsoon impacts and the introduction of new products. With the beginning of festival season and favourable agricultural conditions are also likely to contribute to increased sales. However, heavy rainfall, ongoing agricultural activities and inconsistent monsoon patterns may dampen demand in certain areas.
PV could see mixed results. While the festive season, attractive schemes and good monsoon are expected to boost sales, concerns over low consumer sentiment, heavy rainfall and a lack of new product launches persist. High inventory levels pose a significant risk and it is crucial for PV OEMs to avoid further increases in stock to prevent financial strain on dealers. CV face a modest outlook, with positive factors including improved market reach and the festive season, tempered by challenges such as bad freight rates and ongoing rainfall he added. |
