FADA: 2-wheeler segment reeling under high inflationary costs

2-wheeler sales remain below pre-pandemic levels and fell to a 7-year low during FY2023.

According to vehicle retail data shared by the Federation of Automotive Dealers Association (FADA), the 2-wheeler segment registered a YoY growth of 12.42%. However, sales remain below pre-pandemic levels.

Data shows that 14,45,867 units were sold last month compared to 12,86,109 units in March 2022. The 2-wheeler segment witnessed a growth of 12% YoY but was down by 9% from its pre-covid levels. This could be attributed to the inflationary pressure experienced by rural markets.

The 2-wheeler segment fell to a 7-year low with total retails of 15.9 million during FY2023. EV penetration in this category during the year was at 4.5%. The cumulative 2-wheeler sales for FY2023 stood at 1,59,95,968 units, which is 18.54% more than the previous fiscal (1,34,94,214 units).