Written By As the pandemic continues to impact industries across the world, the auto retail industry is feeling the effects. April 2023 saw a slowdown in auto sales, with two-wheelers in particular struggling to keep up with previous years’ numbers.
According to the latest figures released by the Society of Indian Automobile Manufacturers (SIAM), the overall sales of vehicles, including two-wheelers, cars, and commercial vehicles, fell by 8.78% in April 2023 compared to the same month in the previous year.
Two-wheeler sales, in particular, were down by 11.2% in April 2023 compared to the same month in 2022. This drop in sales is in stark contrast to the growth that the industry saw during the same period last year, when two-wheeler sales grew by 10.5% compared to April 2021.
The reasons for the drop in sales are varied, but one factor that has been cited is the increase in fuel prices, which has put a strain on the budgets of many consumers. With fuel prices continuing to rise, some consumers are looking for more fuel-efficient vehicles, which could be a reason why electric two-wheelers have seen a growth in sales.
Another factor contributing to the drop in two-wheeler sales could be the overall slowdown in the economy, with consumers hesitant to make big purchases amid economic uncertainty.
Experts also point to the impact of the pandemic, with lockdowns and restrictions affecting the supply chain and production of vehicles, which could be causing delays in delivery and a backlog of orders.
Despite the dip in sales, there are still some bright spots in the two-wheeler industry. Electric two-wheelers have seen a rise in popularity, with sales growing by 15% in April 2023 compared to the same month last year. This growth is likely due to the increased awareness of environmental issues and the government’s push for the adoption of electric vehicles.
In addition, some two-wheeler manufacturers have reported growth in sales in rural areas, where demand for personal vehicles has risen due to limited public transportation options.
Overall, while the auto retail industry is facing challenges in April 2023, it is likely that the industry will bounce back as the economy improves and consumer confidence returns. The rise of electric vehicles and increased demand in rural areas could be potential areas of growth for the industry in the future.
