6th March’23, Mumbai: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for February’23.

February’23 Retails

Commenting on how February’23 performed, FADA President, Mr. Manish Raj Singhania said, “February’23 continued to witness double digit growth of 16% YoY but was still down by -8%, when compared to pre-covid month of February’20. All categories also witnessed double digit growth with 2-Wheeler, 3-Wheeler, Passenger Vehicle, Tractor and Commercial Vehicles growing by 15%, 81%, 11%, 14% and 17% respectively on YoY basis.

The 2-Wheeler category witnessed a growth of 15% YoY but was down by -14% when compared to pre-covid month of February’20. The change in OBD norms which comes into effect from April along with marriage season kept the sales ticking. On the overall, high inflation and poor sentiment has kept the customers at bay.

The 3-Wheeler segment has seen 81% growth YoY and has also grown by 3% when compared to pre-covid month of February’20. This category has seen a drastic growth due to Central & State Government’s subsidy along with good scheme promotion done by the states. Along with this, aggressive finance schemes continues to aid growth for this category.

The Passenger Vehicle segment saw a growth of 11% YoY and 16% when compared to pre-covid month of February’20. Launch of new models, continuously improving supply coupled with healthy booking to cancellation ratio and wedding bells kept the momentum going for this already well to do segment.

The Commercial Vehicle category has also shown robust growth by growing 17% YoY though it fell by -10% when compared to pre-covid month of February’20. Walk-in enquiries improved during the month. Apart from this, demand has also increased due to change in OBD norms which is will see price hikes. On the Government’s side, infrastructure spending has been healthy. This is also aiding better sales.”

Near Term Outlook

The month of march has multiple festivals like Holi, Ugadi, Gudi Padwa, Navratri etc. This will help push auto sales. Apart from this, better availability of vehicles, last month of the Financial Year, change in OBD norms from April which will increase vehicle prices, the industry may see schemes being rolled out by the OEMs thus aiding higher sales.

On the flipside, India’s chief economic advisor said that urban demand recovery is taking place at a faster pace then rural. This along with sharp slowdown in private consumption expenditure to a 2-year low suggests a softening in household spending demand amid inflationary pressure as post covid pent-up demand starts to fade.

Apart from this, the Finance Ministry has released a statement that the predictions of a return of El Niño conditions in the Pacific could presage a weaker monsoon in India, resulting in lower output and higher prices. This will act as a dampener for Auto sales.

While the month of March looks good for Auto Sales, on a medium-term outlook, FADA remains cautious till the time a better monsoon forecast is not announced by IMD.

Key Findings from our Online Members Survey

  • Inventory at the end of February’23
    Average inventory for Passenger Vehicles ranges from 35 – 37 days
    Average inventory for Two – Wheelers ranges from 20 – 25 days
  • Liquidity
    Good             35.59%
    Neutral         46.33%
    Bad                18.08%
  • Sentiment
    Good               35.59%
    Neutral           45.20%
    Bad                   19.21%

Chart showing Vehicle Retail Data for February’23

All India Vehicle Retail Data for February’23
CATEGORY FEB’23 FEB’22 YoY % (2022)
2W 12,67,233 11,04,309 14.75%
3W 72,994 40,224 81.47%
E-RICKSHAW(P) 30,413 16,122 88.64%
E-RICKSHAW WITH CART (G) 2,382 1,719 38.57%
THREE WHEELER (GOODS) 8,021 6,207 29.23%
THREE WHEELER (PASSENGER) 32,123 16,138 99.05%
PV 2,87,182 2,58,736 10.99%
TRAC 68,988 60,536 13.96%
CV 79,027 67,391 17.27%
LCV 44,392 39,601 12.10%
MCV 4,808 4,419 8.80%
HCV 26,469 21,358 23.93%
Others 3,358 2,013 66.82%
Total 17,75,424 15,31,196 15.95%

Source: FADA Research


  1. The above numbers do not have figures from TS & LD.
  2. Vehicle Retail Data has been collated as on 04.03.23 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,348 out of 1,434 RTOs.
  3. Commercia Vehicle is subdivided in the following manner
    1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
    2. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
    3. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
    4. Others – Construction Equipment Vehicles and others
  1. 3-Wheeler is sub-divided in the following manner
    1. E-Rickshaw – Passenger
    2. E-Rickshaw – Goods
    3. 3-Wheeler – Goods
    4. 3-Wheeler – Passenger
    5. 3-Wheeler – Personal

February’23 category-wise market share can be found in Annexure 1, Page No. 05