Blitz Bureau
NEW DELHI: Automobile retail sales in India grew by an impressive 14 per cent in July compared to the same period last year, driven by a surge in rural economy in parts of the country, good product availability and launch of new products.
Sequentially too, the automobile sales saw a 7.3 per cent jump. In June, there was a flat 0.73 per cent year-on-year (Y-o-Y) growth in the sales.
July numbers were marked by a sharp jump in two-wheelers (2W) sales which grew by 17 per cent. Passenger vehicles (PV) were not behind as it registered a 10 per cent Y-o-Y increase in July, according to the Federation of Automobile Dealers Associations (FADA).
However, this growth was accompanied by a concern.
Inventory levels have surged to a historic high of 67-72 days in PVs, equating to ~73,000 crore worth of stock. This poses a substantial risk for dealer sustainability. Among the other categories, three wheelers (3W) grew by 13 per cent, and commercial vehicles by 6 per cent. Tractors, however, continued to underperform, falling by 12 per cent year-on-year.
“The 2W segment experienced notable growth due to a thriving rural economy, positive monsoon effects, and government support programs enhancing rural incomes. The introduction of new products and better stock availability also contributed significantly, despite market slowdowns in certain regions, excessive rains, and increased competition,” said CS Vigneshwar, vice president, FADA.
