Nifty Auto has gained 66% over the past one year. According to FADA retail vehicles data, the overall auto retail market reported double-digit growth over the past four months, since November 2023. February 2024 retail market grew 13% YoY with three wheelers leading the auto pack. The three-wheeler market saw a significant increase of 24% YoY with electric three-wheelers constituting 53% of this double-digit growth.
All other major auto categories, two-wheelers, passenger vehicles and tractors reported healthy double-digit growth of 13%, 12% and 11% YoY respectively. While two-wheeler retail growth was supported by the rural market, passenger vehicle retail growth was aided by new product introductions.
FADA is cautiously positive about March retail growth as elections might defer purchases across segments. Commercial vehicle segment, might witness cautious sentiment as customers wait for general elections outcome. In the PV segment, supply constraints might impact availability of popular models. Two-wheelers might be impacted by crop failures in rural areas which could dampen market sentiment and cash availability.
