New Delhi, Nov 7 2024-
The total retail sales of cars, two-wheelers and commercial vehicles in India surged by as much as 32 per cent in October to 28.33 lakh units from 21.44 units in the same month last year on the back of bigger discounts in the festive season and higher rural incomes, according to the Federation of Automobile Dealers’ Association (FADA) data.
“The strong growth in October this year was largely driven by the rural market, especially boosting two-wheeler and passenger vehicles sales, supported by the increased Minimum Support Price (MSP) for rabi crops,” FADA said.
Car sales shot up by 32.4 per cent to 4,83 lakh units during the month due to the festive demand, especially for sports utility vehicles (SUV), as well as new model launches and offers, but inventory levels remained high.
Two-wheeler sales for the month were recorded at 20.7 lakh units units, as compared to 15.14 lakh units in October 2023, registering a growth of 36.35 per cent, while three-wheeler sales were up 11.45 per cent year-on-year to 1.23 lakh units in October 2024, according to the data.
Tractor sales increased 3.08 per cent during October to 64,433 units, from 62,542 units a year ago, according to figures compiled by FADA.
The convergence of major festivals (Navratri and Diwali) in October significantly boosted consumer demand; attractive festive offers, new model launches, and improved stock availability led to a 36 per cent year-on-year and 71 per cent month-on-month growth in two-wheelers.
Besides, rural sentiments, favourable monsoon and good crop expectations, further contributed to the growth, it stated.
Moreover, the 32 per cent year-on-year and 75 per cent month-on-month rise in passenger vehicle sales was driven by festive demand, aggressive offers, and new model introductions, it said.
FADA remains optimistic about near-term growth of the overall automobile industry particularly with the wedding season ahead.
However, potential challenges such as inventory overstock and economic headwinds may affect sales momentum towards the end of the year as a result of which discounts may continue until the end of this year, the dealers’ association said. (Agency)
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