Two-wheeler
Two-wheeler sales have increased rapidly in cities. According to the report of Fada, an organization of vehicle dealers, the performance of rural areas in the two -wheeler segment was better than urban areas. In FY 2023-24, registration of two-wheelers increased by eight percent to 1,88,77,812 units as compared to 1,75,27,115 units. Fada President C.S. Vigneshwar said in a statement that FY 2024-25 actually showed how flexible India’s motor vehicle retail can be. This year the main attraction was a strong performance in rural areas. He said that the area of two -wheelers has increased by eight percent in rural markets, which is much higher than the growth of urban areas.
Economic experts say that increasing two -wheeler sales in villages are auspicious signs for Indian economy. Increased demand for vehicles in the village shows strength in the economy. GDP increases the speed of GDP. The rural demand has always been giving boost to the industry. Further, its effect will be seen on the Indian economy.
Decline in tractor sales
In the financial year 2024-25 in the country, the retail sales of the motor vehicle increased by six percent to 2,61,43,943 units on an annual basis. Fada said in a statement on Monday that the financial year 2024-25 saw an increase in sales of passenger vehicles, two-wheelers and three-wheelers. However, registration of commercial vehicles and tractors declined in the previous financial year as compared to the financial year 2023-24. According to Fada, in FY 2023-24, retail sales of passenger vehicles increased by five percent to 41,53,432 units in the previous financial year compared to 39,60,602 units. Rural sales growth in passenger vehicle sector was eight percent while in urban areas it was three percent. Sale of three-wheelers increased by five percent to 12,20,981 units in the previous financial year as compared to the financial year 2023-24.
Car demand declines
In the financial year 2024-25, there was a nine percent increase in rural sales of three-wheelers, while there was no increase in sales in cities. In the last financial year, sales of commercial vehicles declined slightly to 10,08,623 units, while in FY 2023-24 it was 10,10,324 units. On the other hand, tractor sales fell by one percent to 8,92,410 units on an annual basis while in FY 2023-24 it was 8,83,095 units. According to Fada data, the total sales of motor vehicles in March were 21,26,988 units with a slight fall on an annual basis. However, in March, registration of passenger vehicles increased by six percent to 3,50,603 units on an annual basis. Sales of two -wheelers declined by two percent to 15,08,232 units in March 2025, compared to 15,35,398 units in March 2024.
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