Indian Auto Retail Sees Impressive 13% Surge in February Driven by Diverse Vehicle Demand
In February, Indian auto retail sales experienced a robust surge of 13%, reaching 2.03 million units compared to 1.79 million units in the same period last year, as reported by the Federation of Automobile Dealers Associations (FADA). This impressive growth was propelled by increased vehicle availability, heightened demand due to favorable economic conditions, and the impact of the marriage season. Passenger vehicles (PVs) witnessed an exceptional 12% increase in sales, achieving 330,107 units, with every other vehicle category, including two-wheelers, three-wheelers, tractors, and commercial vehicles, also displaying positive growth rates of 13%, 24%, 11%, and 5%, respectively.
The two-wheeler sector’s growth was particularly influenced by heightened demand from rural areas, a surge in interest for premium models, and strong performance in the entry-level segment. The broader availability of products and attractive offers further contributed to the sector’s positive momentum. However, the upcoming Lok Sabha elections are anticipated to impact sales adversely, leading to potential deferred purchases across various segments. The commercial vehicle segment, despite facing challenges such as cash flow shortages and election-related purchase deferrals, displayed resilience and gradual recovery, with a 5% growth in February. The sector remains cautiously optimistic, navigating supply constraints and external factors like crop failures in rural areas that could affect market sentiment and financial liquidity.
