Automobile sales increased 6.6% in annual sliding during the month of January, in accordance with data from the Federation of Automobile Dealers Associations (FADA). The data complies with the previous projections of the FADA for a moderately positive January, he said.
The robust start-up was obvious in all categories of vehicles, including two-wheelers, three wheels, passenger vehicles, tractors and commercial vehicles. Two -wheeled sales increased by 4.15% in annual shift and one month of 27.39% per month, urban markets going from 41.6% in December to 43.7% in January. The new launches of the model, the demand for the wedding season and the improvement of financing options were the main growth engines, said FADA. However, concerns concerning the increase in interest rates and the challenges of rural liquidity persist.
Sales of passenger vehicles have also shown significant growth, increasing by 15.53% in annual shift and 58.77% per month, partly due to the December purchases recorded in January. Urban areas have increased the market share, but rural regions have displayed higher growth in annual slip. The dealers have assigned this to improving demand and last year’s reduction strategies, which helped change registrations.
Sales of commercial vehicles increased by 8.22% in annual sliding and jumped 38.04% per month, urban markets exceeding rural growth. The higher freight rates and the demand for passenger carriers have contributed to this performance, although low cash and strict financing policies pose challenges, especially in slow sectors such as cement and coal.
Inventory levels have improved, from 50 to 55 days, which indicates a better supply balance.
As February approaching, the sector maintains cautious optimism. According to a recent survey, 46% of dealers anticipate growth, while 43% expect sales to remain stable and 11% provide a drop.
Positive factors such as the current wedding season, new products and strategic promotions should support customer attendance. Nevertheless, challenges remain, in particular shorter working days, low rural liquidity, inflationary pressures and strict loan criteria.
The president of the FADA, CS Vigneshwar, said: “Despite this, the retail stands in India in India are ready for modest gains if these opposite winds relax. With almost half of the dealers interviewed always expecting an increase, a feeling of collective optimism prevails, suggesting that the industry is ready to get out of the short -term challenges and wait for brighter days to come. »»
