Vehicle retail sales increased significantly in February compared to last year's month, achieving a double-digit jump. The automobile industry, which had been struggling for months due to the pandemic, is clearly on the mend because of this encouraging outcome.
With 79,027 units sold in February 2023, retail sales of commercial vehicles increased by 17% from the same month in 2023. Nonetheless, it was still 10% lower than in February 2020. Retail sales of three-wheelers increased significantly by 81%, from 40,224 units in February 2022 to 72,994 units in February 2023. In February 2023, sales of tractors increased by 14% year over year to 68,988 units. Manish Raj Singhania, president of FADA, forecasted that the upcoming festivals would probably increase sales.
FADA (Federation of Automobile Dealers Associations) claims that a number of factors, including a rise in consumer confidence, low lending rates, and pent-up demand, were responsible for the rise in retail sales. They also emphasised the steps taken by the government to aid the auto industry, such as the restructuring programme and the lower GST rates for electric vehicles.
According to Manish Raj Singhania, president of the FADA, the introduction of new models, better supply, and the wedding season all contributed to an 11% increase in retail sales of passenger vehicles in February 2023. According to this, two-wheeler registrations witnessed a 15% increase from the prior year but a 14% decline from the month of February 2020 before Covid. Singhania noted that rising inflation and unfavourable sentiment impacted consumer behaviour and linked the sales spike to the impending change in OBD regulations and the wedding season.
The economy's general health depends on the industry's recovery, and the government's support through various programmes is anticipated to further accelerate sector growth.
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