Surge in India's October Vehicle Sales Driven by Rural Markets and Festive Season

India's vehicle retail sales surged by 32% in October, reaching 28,32,944 units. Growth across all segments was fueled by rural market demand and festive season boosts. Key increases were noted in two-wheeler and passenger vehicle sales, supported by increased MSP for Rabi crops and favorable monsoon conditions.

In a remarkable upswing, India's vehicle retail sales soared by 32% year-on-year to hit 28,32,944 units in October, data from the Federation of Automobile Dealers' Association (FADA) reveals. The strong momentum spanned across all segments, notably two-wheelers and passenger vehicles, primarily fueled by the rural market and festive season promotions.

Octobers' growth was significantly propelled by an increase in Minimum Support Price for Rabi crops and a favorable monsoon, creating buoyant rural sentiments. Passenger vehicles marked an impressive 32.38% increase, surging to 4,83,159 units from last year's 3,64,991 units. Two-wheeler sales also witnessed a substantial jump of 36.35% to 20,65,095 units from 15,14,634 units in the previous year.

The festive period, notably Navratri and Diwali, saw heightened consumer demand, supplemented by compelling offers and new vehicle launches, facilitating robust growth. FADA foresees continued optimistic trends with the upcoming wedding season, although it remains cautiously aware of challenges like potential inventory overstock and economic headwinds.

(With inputs from agencies.)