Automobile retail sales witnessed a 10 per cent annual growth in July, driven by a robust show across passenger vehicles, two-wheelers and commercial vehicles, industry body FADA said.

Total retail sales across segments rose to 17,70,181 units last month compared with 16,09,217 units in July 2022.

Passenger vehicle sales saw an increase of 4 per cent to 2,84,064 units last month compared with 2,73,055 units in the year-ago period, the Federation of Automobile Dealers Associations (FADA) said.

“The month saw a surge in orders and timely OEM supplies, especially with the introduction of new products. However, severe monsoons and flood-like situations especially in North India, impacted sales,” FADA president Manish Raj Singhania said.

SUVs continued to remain a popular choice for buyers, he added. Two-wheeler retail sales rose 8 per cent to 12,28,139 in July against 11,35,566 units in the same period last year. Commercial vehicle retail sales saw a 2 per cent year-on-year jump to 73,065 units from 71,619 units in July 2022.

“The CV segment showed mixed dynamics. Despite robust stock availability and growth in areas like school buses, challenges from erratic weather and high vehicle costs affected demand,” Singhania said.

Meanwhile, the domestic auto component industry expects to log in double-digit sales growth in the current fiscal after having reported its highest-ever turnover in 2022-23 as demand is expected to remain robust.

According to the Automotive Component Manufacturers Association (ACMA), the sector reported a turnover of Rs 5.6 lakh crore last fiscal, a growth of 33 per cent over Rs 4.2 lakh crore in 2021-22. In 2022-23, exports grew 5 per cent to Rs 1.61 lakh crore while imports grew 11 per cent to Rs 1.63 lakh crore, it added.