New Delhi, November 7 (IANS). According to the latest data of Federation of Automobile Dealers Associations (FADA), due to GST rate cut and increased demand during the festive season, retail sales of vehicles in India increased to 40.2 lakh units in October this year, which is a huge growth of 40.5 percent over the same period last year. In the same period last year, this figure was 28.7 lakh units. The two-wheeler segment contributed significantly to vehicle sales in October.
According to the data released regarding two-wheeler sales, a jump of 51.8 percent was recorded in two-wheeler sales, after which it increased to 31.5 lakh units. Besides, passenger vehicles grew by 11.4 percent to 5.57 lakh units.
FADA said that commercial vehicle sales recorded a growth of 17.7 percent, which increased to 1.08 lakh units. Apart from this, tractor sales have also increased by 14.2 percent to 73,577 units. At the same time, sales of three-wheeler vehicles increased to 1.30 lakh units, which shows a growth of 5.4 percent.
FADA has said that strong performance was recorded in retail sales of vehicles during the 42-day festive period. Total vehicle sales increased by 21 percent compared to last year. The festivals of Diwali and Dussehra were celebrated in October. Apart from this, due to the cut in GST rate, there was also an increase in the expenditure of rural Indians.
FADA President C.S. Vigneshwar said, “The month of October this year will be seen as a memorable month for auto retail in India. Vehicle retail sales have grown by 40.5 per cent year-on-year. Both passenger vehicles and two-wheelers have registered great success in achieving lifetime highs. This surge in vehicle sales reflects a new confidence in customers and strong economic activity.”
According to FADA, there has been a growth of 23 percent in the sales of passenger vehicles, 22 percent in the sales of two-wheelers, 15 percent in the sales of commercial vehicles, 14 percent in the sales of tractors, 9 percent in the sales of three-wheelers. Apart from this, a 24 percent decline has been recorded in construction equipment due to project delays and tight financing.
–IANS
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