Retail sales of cars, two-wheelers, and commercial vehicles in India rose by 32 per cent in October to 28.33 lakh units from 21.44 lakh units for the same month the previous year, and were propelled by festive season discounts and higher rural income, according to the Federation of Automobile Dealers' Association.
The rural market has been driving most of the robust growth in October this year, according to FADA. The two-wheeler and passenger vehicle sales bounced further supported by elevated MSP for rabi crops, FADA said.
Car sales went north by a spectacular 32.4 per cent at 4.83 lakh units on the strength of festive demand for sports utility vehicles (SUVs), new model launches, and offers, though inventory levels remained high.
Two-wheelers: Sales up 36.35% at 20.7 lakh units; three-wheelers up 11.45% year-on-year at 1.23 lakh units; and tractors are up 3.08% at 64,433 units-that is, 2,891 units more than the 62,542 units recorded in the same month last year.
The simultaneous arrival of major festivals like Navratri and Diwali in October helped pump up consumer demand massively. According to FADA, "with attractive festive offers, new model launches, and improved stock availability," there were 36% year-on-year and 71% month-on-month growths in two-wheeler sales.
Happy rural sentiments, good monsoons, and optimistic crop prospects also added to the windfall.
Passenger vehicle sales rose by 32pc over the same month last year and 75pc over last month on the back of festive demand, aggressive offers, and new model introductions.
Looking ahead, FADA is upbeat about the growth of the automobile industry, especially during the wedding season. However, good sales momentum toward the year-end would be hamstrung by inventory overstock and headwinds coming from the economy, which may prolong discounts till the end of the year, felt a senior functionary of the dealers' association.
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