Retail sales figures for the previous month stood at 2,029,541 units, marking an increase from 1,794,866 units recorded in the corresponding period last year.
The passenger vehicle segment experienced a notable growth of 12 percent, reaching 330,107 units compared to 293,803 units in February 2023. Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA), attributed this surge to the strategic launch of new products and improved vehicle availability.
Two-wheeler sales also witnessed a rise, totaling 1,439,523 units, reflecting a 13 percent increase from 1,271,073 units sold during the same period the previous year. Singhania highlighted the driving factors behind this growth, including heightened demand in rural areas, increased interest in premium models, and strong performance in the entry-level segment.
Various factors such as auspicious wedding dates and an improved economic landscape further contributed to the positive sales momentum, Singhania noted.
Commercial vehicle retail sales reached 88,367 units, marking a 5 percent increase compared to the previous year despite challenges such as cash flow constraints and delays related to election-related purchases.
Three-wheeler sales surged by 24 percent year-on-year to 94,918 units, while tractor sales recorded an 11 percent growth, reaching 76,626 units in February.
Looking ahead, Singhania expressed optimism for the market, citing positive signals from rural areas and anticipated demand spikes in premium and entry-level segments across different vehicle categories. He also highlighted expectations for increased sales in the three-wheeler and commercial vehicle sectors, driven by the end-of-financial-year rush and market liquidity injections.
In the passenger vehicle segment, factors such as fiscal year-end buying incentives, improved vehicle availability, and seasonal influences like weddings are expected to drive demand in the coming months.
Singhania concluded with a cautiously optimistic outlook for the auto retail sector in March 2024. He mentioned that the average inventory for passenger vehicles ranges from 50 to 55 days, while for two-wheelers, it stands at 10 to 15 days.
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