For the first time during the ongoing fiscal year, retail automobile sales have registered growth in December 2020 along with the growth of wholesale despatches that is consistent for the past few months.
The Federation of Automobile Dealers Associations (FADA) on Monday released data which states that sales grew by 11 per cent across categories during the December month on a year-on-year (y-o-y) basis.
A good crop season, better offers on purchases in the two-wheeler segment, launches in the passenger vehicle (PV) and two-wheelers, and fear of price hike in January, has backed the growth in the sector.
The retail sales of PV had been showing growth in previous months as well with the two-wheeler segment recording growth of 12 per cent y-o-y, moving to a positive direction for the first time.
However, the growth in sales is not very surprising because in the December month, both manufacturers and dealers offer discounts that are expectedly higher than earlier months to clear the stocks. It's because consumers expect newly manufactured vehicles in the new year.
