New Delhi, March 5 (IANS). A tremendous increase was recorded in retail vehicle sales in India in February. Vehicle sales in the country increased by 25.62 percent year-on-year to reach 24.09 lakh units, surpassing the previous record of February 2024. This information was given by the Federation of Automobile Dealers Association (FADA) on Thursday.
This increase was seen in almost all vehicle segments. On annual basis, sales of two-wheelers increased by 25.02 percent, sales of three-wheelers increased by 24.39 percent, sales of passenger vehicles increased by 26.12 percent and sales of commercial vehicles increased by 28.89 percent. It is clear from this that along with vehicles for personal use, the demand for vehicles related to economic activities also remains strong.
According to FADA, even in March, dealer confidence regarding the market remains quite positive. About 75.51 percent dealers expect sales to increase further, while 19.90 percent dealers expect the market to remain stable and only 4.59 percent dealers expect a decline.
There was also a tremendous growth in tractor sales in February. This segment recorded a strong growth of 36.35 percent, making it the fastest growing segment of the month.
However, construction equipment was the only segment that did not create a new record. This sector recorded a slight decline of 1.22 percent on an annual basis.
FADA said that the strong performance of the market in February shows that the confidence generated by government policies is now visible in demand also. Especially after GST 2.0, stability and confidence in the market has increased, due to which demand remains strong in different vehicle segments.
Retail sales of two-wheelers increased by 25.02 percent to 17,00,505 units. Dealers say a good harvest, better cash availability in rural areas, attractive marketing schemes and better prices after the GST transition have played an important role in this growth.
Sales of commercial vehicles stood at 1,00,820 units in February, which is 28.89 percent higher on an annual basis. According to dealers across the country, purchases of new vehicles have increased due to better freight traffic, stable e-commerce activities and infrastructure-related demand.
Retail sales of passenger vehicles stood at 3,94,768 units, showing a growth of 26.12 percent on an annual basis. During this period, there was a growth of 21.12 percent in the urban market, while a sharp growth of 34.21 percent was recorded in the rural market. It is clear from this that apart from metros, the demand for vehicles is increasing rapidly in rural and small towns also.
According to the report, rising demand in rural areas is particularly supporting the sales of small cars, although SUVs and utility vehicles still remain a major contributor to overall sales.
–IANS
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