New Delhi . India's auto sector's retail sales have registered a surge due to big discounts and higher rural incomes during the festive season. According to Federation of Automobile Dealers Association (FADA) data, total retail sales of cars, twowheelers and commercial vehicles in India increased by 32 per cent to 28.33 lakh units in October from 21.44 units in the same month last year.
FADA said, “The growth rate seen in October this year is mainly the result of increased demand in the rural market. The reason for this solid growth was the rise in sales of twowheelers and passenger vehicles. This is because of the increased minimum prices for Rabi crops. They got the benefit of support price (MSP).
Car sales grew 32.4 per cent to 4,83 lakh units during the month, led by sports utility vehicles (SUVs) as well as new model launches and offers.
According to the data, sales of twowheelers this month stood at 20.7 lakh units, while in October 2023 it was 15.14 lakh units. Which shows an increase of 36.35 percent compared to last year.
At the same time, sales of threewheelers increased by 11.45 percent on an annual basis to 1.23 lakh units in October 2024.
According to FADA data, tractor sales during October rose 3.08 percent to 64,433 units from 62,542 units a year ago.
The coinciding of major festivals such as Navratri and Diwali in October led to a boost in consumer demand. Twowheeler sales grew by 36 per cent YoY and 71 per cent YoY due to attractive festive offers, new model launches and better stock availability.
Besides, rural sentiments, favorable monsoon and expectations of good harvest also contributed to the growth.
Passenger vehicle sales witnessed 32 per cent annual and 75 per cent monthonmonth growth driven by festive demand, attractive offers and launch of new models.
FADA expects the auto industry to remain bullish for some time to come. Especially the positive impact of the wedding season can be seen.
However, the dealers' association said potential challenges such as inventory overstock and economic headwinds could impact yearend sales momentum.
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Image Credit: KhasKhabar.