- By Divanshi Sharma
- Tue, 28 Nov 2023 01:05 PM (IST)
- Source:JND
Vehicle sales in India rose 19% during a 42-day festive season, boosted mainly by strong demand for two-wheelers in rural areas, the Federation of Automobile Dealers Associations (FADA) said on Tuesday. Indians generally make big-ticket purchases on items like vehicles during the festive season, which kicked off in mid-October this year and ran till November 25.
Two-wheeler sales surged about 21% in the period to 2.9 million units, FADA, which provides monthly data on dealer sales, said, adding, "Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases."
"During the 42-day festive period of FY2023, we reached a new milestone with vehicle sales climbing to 37.93 lakh, a 19 per cent increase from last year's 31.95 lakh. Significant growth was observed in the two-wheeler, three-wheeler, commercial vehicles and passenger vehicles, with respective rises of 21 per cent, 41 per cent, 8 per cent, and 10 per cent. Conversely, the tractor segment experienced a slight decline of 0.5 per cent," FADA President, Manish Raj Singhania said.
Caution remains around PV inventories as original equipment manufacturers continue to push further dispatch, keeping inventory rates near all-time highs, FADA said, adding that sport utility vehicles (SUVs) were in the most demand.
"While SUVs were the highest demanded vehicles, inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch thus keeping the inventory rate at near to all-time high levels," said Singhania.
Two-wheeler makers' sales to dealers inched closer to pre-pandemic volumes in October due to strong festive demand and discounts on entry-level models, data showed earlier this month. "Tractors, which saw an 8.3% decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5% decrease," FADA said.
(With Reuters Inputs)