Good news for India's automobile sector in the new year. According to the latest report, retail vehicle sales have seen a surge over the past year. Data from the Federation of Automobile Dealers Association (FADA) shows that vehicle sales increased by 17.61 per cent from January last year to January this year. Demand has been witnessed not only in urban areas but also in rural regions. Sellers believe this momentum has come from the festive and wedding season, along with GST exemptions.
Whose sales have increased?
Sales of all types of vehicles have increased. However, if we make a list, two-wheelers and tractors top the chart. This means sales have increased in villages as well as the purchase of new machinery in agriculture has gained momentum. Growth has also been seen in the sales of commercial passenger vehicles and personal cars used for business purposes. Sellers believe this momentum will continue to grow in February as well.
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Two-wheeler sales have increased by 20.82% over the past year. Tractor sales have increased by 22.89%. Three-wheeler sales have increased by 18.80%. Commercial vehicle sales have increased by 15.07%. Personal car sales have increased by 7.22%. However, sales of construction vehicles have declined. Sales decreased by 21.09% during the same period.
FADA data shows that vehicle sales in rural areas have increased by 19.77% this year. In urban areas, that figure is 22.19%. While cities are ahead in terms of numbers for personal car sales, rural areas have progressed in terms of growth rate. According to sellers, this data clearly shows that demand for personal cars is now increasing in rural areas as well. FADA data indicates that 72.56% of sellers believe business will maintain momentum in February despite fewer days in the month.
