19% sales growth for automobiles during festive period

Chennai, Nov 28 (SocialNews.XYZ) The automobile sector logged 19 per cent retail sales volume growth during the 42-day festive period, said the Federation of Automobile Dealers Association (FADA).

The Federation of Automobile Dealers Associations (FADA) on Tuesday released Vehicle Retail Data for 42 days festive period that began on the first day of Navratri and ended 15 days post Dhanteras.

According to FADA President, Manish Raj Singhania, a new milestone was reached with vehicle sales climbing to 37.93 lakh, a 19% increase from last year's festive period 31.95 lakh.

Significant growth was observed in the two-wheeler, three-wheeler, commercial vehicles and passenger vehicles, with respective rises of 21%, 41%, 8%, and 10%. Conversely, the tractor segment experienced a slight decline of 0.5%.

Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases.

Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Deepawali, ending with a 10% growth rate.

While sports utility vehicles (SUV) were the highest demanded vehicles, inventory levels for passenger vehicles remain a significant concern as the vehicle makers continue to push further dispatch thus keeping the inventory rate at near to all time high levels, FADA said.

Tractors, which saw an 8.3% decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5% decrease. This turnaround highlights the robust purchasing power in rural India, FADA added.

Source: IANS