New Delhi, February 10 (IANS). India’s total retail vehicle market has increased by 17.61 percent year-on-year to 27,22,558 units in January. The reason for this is the increase in demand for two-wheelers and passenger vehicles. This information was given by the Federation of Automobile Dealers Association (FADA) on Tuesday.
FADA said in the statement that sales of passenger vehicles increased by 7.22 percent to 5,13,475 units in January. The share of urban areas in total sales was 59.2 percent.
Retail sales of passenger vehicles in rural areas have increased by 14.43 percent on an annual basis. At the same time, sales of passenger vehicles in urban areas have increased by 2.75 percent, which shows that demand is increasing rapidly in rural areas.
CS Vigneshwar, President, FADA, said, “The demand for passenger vehicles and goods vehicles remains strong due to strong cash flow in rural areas due to harvest coupled with reduction in GST and wedding season.
According to the feedback received from dealers, there is a surge in vehicle inquiries and customer interest has increased towards high-value models.
He further said that sales in rural areas remain strong due to Pongal or Makar Sankranti and wedding season.
FADA said that the highest growth was recorded in the sales of two-wheelers, which numbered 18,52,870 units, an increase of 20.82 percent compared to the previous year. The share of rural areas in two-wheelers was about 56 percent. Sales of commercial vehicles stood at 1,07,486 units, which is 15.07 percent higher. These included 65,505 units of light commercial vehicles and 34,287 units of heavy commercial vehicles, both of which saw sales grow by about 14 percent.
FADA said the market environment in February is quite positive, supported by favorable macroeconomics and growing confidence of dealers on the ground. 72.56 percent dealers expect an increase, while only 4.51 percent dealers expect a decline.
–IANS
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