Festive Fervour: How Rural India Contributed To Surge In Vehicle Sales During the festival period, vehicle sales increased to 37.93 lakh, with rural areas particularly contributing to the surge in two-wheeler purchases
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The 42-day festive period of FY2023, starting the first day of Navratri and ending 15 days post Dhanteras, vehicle sales increased to 37.93 lakh, a 19 per cent rise from last year's 31.95 lakh. Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases.
"During the 42-day festive period of FY2023, we reached a new milestone with vehicle sales climbing to 37.93 lakh, a 19 percent increase from last year's 31.95 lakh," said FADA President, Manish Raj Singhania.
Significant growth was observed in the two-wheeler, three-wheeler, commercial vehicles and passenger vehicles, with respective rises of 21 percent, 41 percent, 8 percent and 10 percent. Conversely, the tractor segment experienced a slight decline of 0.5 percent.
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 per cent growth rate. While SUVs were the highest demanded vehicles, inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch thus keeping the inventory rate at near to all time high levels.
Tractors, which saw an 8.3 per cent decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5 per cent decrease. "This turnaround highlights the robust purchasing power in rural India," added Singhania.
The two-wheeler (2W) retail sales grew by around 21 per cent YoY to 28,93,107 units as against 23,96,665 units during the similar period in 2022. The three-wheeler (3W) retail sales grew by 41.39 per cent YoY to 1,42,875 units during the festive season this year as compared with 1,01,052 units during the festive season last year. The commercial vehicle (CV) sales grew by 8.11 per cent YoY to 1,23,784 units as compared with 1,14,498 units during the same period last year. Similarly, passenger vehicle (PV) sales grew by 10.32 per cent year-on-year (YoY) to 5,47,246 units during this period as compared with 4,96,047 units the previous year.