The strong growth in October this year was largely driven by the rural market, especially boosting two-wheeler and passenger vehicles sales, supported by increased Minimum Support Price (MSP) for Rabi crops.
The total vehicle retail sales in India witnessed a 32 per cent on-year rise in October to 28,32,944 units with all segments including two-wheelers and passenger vehicles registering strong growth, Federation of Automobile Dealers’ Association (FADA) said on Wednesday.
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The total vehicle retail sales in October 2023 stood at 21,43,929 units, as per FADA.
The strong growth in October this year was largely driven by the rural market, especially boosting two-wheeler and passenger vehicles sales, supported by increased Minimum Support Price (MSP) for Rabi crops, FADA said.
Passenger vehicle sales grew 32.38 per cent to 4,83,159 units, from 3,64,991 units retailed in October 2023, it stated.
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Two-wheeler sales for the previous month were recorded at 20,65,095 units, as compared to 15,14,634 units in October 2023, registering a growth of 36.35 per cent, while three-wheeler sales were up 11.45 per cent year-on-year to 1,22,846 in in October 2024, it said.
Tractor sales, according to FADA, increased 3.08 per cent during October to 64,433 units, from 62,542 units a year ago.
The convergence of major festivals (Navratri and Diwali) in October significantly boosted consumer demand; attractive festive offers, new model launches, and improved stock availability led to a 36 per cent year-on-year and 71 per cent month-on-month growth in two-wheelers, according to FADA.
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Besides, rural sentiments, favourable monsoon and good crop expectations, further contributed to the growth, it stated.
Moreover, the 32 per cent year-on-year and 75 per cent month-on-month rise in passenger vehicle sales was driven by festive demand, aggressive offers, and new model introductions, it said.
FADA remains optimistic about near-term growth of the overall automobile industry particularly with the wedding season ahead.
However, potential challenges such as inventory overstock and economic headwinds may affect sales momentum towards the end of the year, it said.
