Indian automobile retail sales will see a single-digit growth in the fiscal year 2023-24, after closing the fiscal year 2022-23 with double-digit growth, the Federation of Automobile Dealers’ Association (FADA) said in a forecast on Wednesday, April 5.
FADA said that high retail sales growth of 21 percent in 2022-23 has passed and going forward is likely to fall to a low single digit owing to a high base effect, inflationary pressures, price increases by manufacturers, and regulatory changes.
Additionally, for the third consecutive month, US government agencies have warned of the possibility of El Nino’s arrival later this year, which could lead to poor monsoons, hampering rural India's growth potential, it said.