Vehicle sales in India increase 19% during festive season – dealer body – November 28, 2023 at 07:17

Vehicle sales in India rose 19% during the 42-day festive season, mainly driven by strong demand for two-wheelers in rural areas, an auto dealers’ body said on Tuesday.

Indians usually make large purchases, such as vehicles, during the festive season, which started in mid-October this year and continues until November 25.

Sales of two-wheelers increased about 21% during this period to 2.9 million units, according to data from the Federation of Automobile Dealers Associations (FADA).

“Record sales were recorded across several categories, with rural areas in particular contributing to the increase in two-wheeler purchases,” FADA, which provides dealers’ monthly sales data, said in a statement.

Sales of two-wheelers to dealers neared pre-pandemic volumes in October, driven by strong demand during the holiday season and discounts on entry-level models, data at the start of the month showed.

Three-wheeler sales grew by 41 percent, while passenger vehicles increased by around 10 percent to 547,246 units, FADA added.

“Tractor sales, whose sales fell 8.3 per cent during Navratri, saw a remarkable recovery, ending the festive period with a decline of just 0.5 per cent,” FADA said.

Tractor sales, a key indicator of the rural economy, fell 0.4% after a 10% decline in September.

Caution remains on PV vehicle inventories as original equipment manufacturers continue to push deliveries further, keeping inventory levels near historic highs, FADA said, adding that sport utility vehicles (SUVs) are the most in demand. (Reporting by Yagnoseni Das in Bengaluru; Editing by Varun HK)

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