Two-Wheelers Lead Automotive Sales Surge in October

October marked a pivotal month for India's automobile industry, witnessing substantial growth in two-wheeler sales, moderate gains in passenger vehicles, and a flat performance in commercial vehicles. The noteworthy success in exports further underscores the increasing demand, especially in rural areas and following new model introductions.

In a dynamic snapshot of October's automobile sales, India's industry demonstrates a segmented performance. Two-wheelers have led the charge with an impressive 11% year-over-year growth in domestic sales, bolstered by rural demand, new model launches, and festive season purchasing, according to a report by Axis Securities.

The passenger vehicle segment displayed moderate expansion, with sales increasing by 1-3% YoY and 10-12% month-over-month. However, these gains are considered modest due to a high sales base from previous years and shifting consumer preferences.

Conversely, the commercial vehicle segment exhibited subdued results, posting largely flat year-over-year sales but a 9% monthly increase. Challenges such as underutilized fleet capacity and changing demand in the medium and heavy truck sectors temper future growth expectations, though tractor sales have surged by 29% YoY, driven by agricultural demand.

(With inputs from agencies.)