New Delhi . Despite being weak in September, retail sales of vehicles in the country have registered a growth of 6.55 percent in the first six months of the current financial year. This has been possible due to strong rural demand.
Federation of Automobile Dealers Association (FADA) said in the report released on Monday that the overall sales of vehicles in September this year were 9.26 percent less as compared to the same month last year. In September 2023, 18,99,192 vehicles were sold in the country while in September 2024 the number was 17,23,330 units. This includes a decline of 18.81 percent in passenger vehicles, 10.45 percent in commercial vehicles and 8.51 percent in twowheelers.
The AprilSeptember period saw a growth of 9.08 per cent in twowheeler sales, 7.58 per cent in threewheelers and 1.07 per cent in passenger vehicles (PV). However, sales of commercial vehicles (CV) and tractors declined by 0.65 per cent and 8.82 per cent respectively.
FADA President C.S. According to Vigneshwar, “Pitrapaksha negatively impacted sales, leading to yearonyear decline in retail sales across various categories”.
“Discounts and offers have been introduced in various sectors to increase demand, but these have not led to any improvement in sales so far,” he said.
Eight percent more rainfall than normal was recorded during the monsoon, affecting retail sales of vehicles in many areas. This had a negative impact on demand.
According to FADA, “The near future is good for the automobile retail business, as Navratri and Diwali both fall in the same month, which is expected to boost vehicle sales.”
Sales of twowheelers, passenger vehicles, and tractors are expected to increase during the festive season, with good water levels in reservoirs and improved crop yields supporting rural demand.
The report said, “The passenger vehicle segment is facing a critical situation due to excess stock of vehicles at dealerships. If sales in October do not grow as expected, dealers will face financial burden from the unsold stock accumulated in warehouses. The pressure will increase.”
While dealers and OEMs are betting on strong festival sales, especially in rural markets where positive cash flows and better farming conditions are expected to boost demand, the outcome remains uncertain.
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Image Credit: KhasKhabar.