Festive Boost: India's Auto Sales Soar by 12% Despite Weather Woes

The Federation of Automobile Dealers Associations (FADA) reported a 12% increase in automobile retail sales during India's festive period, totaling 42,88,248 units, up from 38,37,040 units last year. While passenger and two-wheeler sales thrived, tractor sales saw a decline. Weather disruptions and strategic caution were noted.

In a significant rise, automobile retail sales in India jumped 12% year-on-year, reaching 42,88,248 units during the 42-day festive period, according to the Federation of Automobile Dealers Associations (FADA). Compared to 38,37,040 units last year, this growth highlights the strong consumer demand.

Passenger vehicle sales climbed by 7% with 6,03,009 units sold, as the market benefited from pent-up demand and attractive discounts. Two-wheeler sales posted a robust 14% increase, driven largely by rural demand. However, the industry faced challenges with unseasonal rains impacting key markets in South India.

FADA President CS Vigneshwar urged Original Equipment Manufacturers (OEMs) to focus on efficient inventory management as the year-end approaches. The auto sector anticipates future benefits from government infrastructure spending and improved agricultural conditions enhancing farmers' purchasing power.

(With inputs from agencies.)