News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay  » Business » Robust demand helps auto retail sales surge 13% in February

Robust demand helps auto retail sales surge 13% in February

Source: PTI
March 07, 2024 17:02 IST
Get Rediff News in your Inbox:

Automobile retail sales in India rose 13 per cent year on year in February with all the segments, including passenger vehicles and two-wheelers, witnessing robust offtake, dealers' body FADA said on Thursday.


Photograph: Adnan Abidi/Reuters

Overall retail sales stood at 20,29,541 units last month as compared to 17,94,866 units in the year-ago period.

Passenger vehicle sales grew 12 per cent to 3,30,107 units last month as against 2,93,803 units in February 2023.

"Passenger vehicles saw the highest sales figures ever recorded for the month of February.

"This upward trajectory was propelled by the strategic introduction of new products and enhanced vehicle availability," the Federation of Automobile Dealers Associations (FADA) president Manish Raj Singhania said in a statement.


Two-wheeler sales stood at 14,39,523 units, up 13 per cent, as compared to 12,71,073 units in the same period last year.

The growth in the segment was driven by the rural sector, premium model demand, and strong entry-level segment performance, with broader product availability and compelling offers enhancing product acceptance, Singhania noted.

Factors like favourable marriage dates and improved economic conditions also contributed to this positive growth, he added.

Commercial vehicle retail sales rose to 88,367 units in February, registering a growth of 5 per cent as against the same month last year.

The segment saw growth despite obstacles like cash flow shortages and election-related purchase deferrals, highlighting the sector's resilience and gradual recovery, Singhania said.

Three-wheeler retail sales saw a growth of 24 per cent year on year to 94,918 units last month.

Similarly, tractor sales grew 11 per cent to 76,626 units last month from 69,034 units in February last year.

On sales outlook, Singhania said positive signals from the rural areas along with an increased demand for premium and entry-level segments is expected to bolster the two-wheeler market.

Similarly, three-wheeler and commercial vehicle sectors anticipate a boost in sales, driven by the financial year-end rush and an infusion of funds into the market, he added.

In the PV sector, the confluence of financial year-end buying incentives improved availability of vehicles and seasonal factors such as marriages is likely to propel demand, he said.

"Overall, the near-term outlook for March 2024 in the auto retail sector is one of cautious optimism," Singhania said.

The average inventory for passenger vehicles currently ranges from 50-55 days while for two-wheelers it is 10-15 days, he said.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Moneywiz Live!