Car Sales See A Surge In Rayalaseema With Disposable Incomes And Loan Options

KURNOOL: Car sales are witnessing a remarkable and sustained surge across the Rayalaseema region. Their demand is accelerating at an unprecedented pace.Until a few years ago, automobile sales in the region had been 20 per cent to 30 per cent less than other parts of the state. However, the scenario has now undergone a dramatic transformation. Rayalaseema has not only caught up; in some cases, the region has moved ahead of other regions. Observers attribute this shift to a combination of socio-economic changes and policy factors. The growing desire of nuclear families to own personal vehicles, rising disposable incomes, and easy access to vehicle loans through flexible EMI options have played a crucial role. Additionally, reduction in GST rates on certain vehicle segments over the past several months has made car ownership more affordable, leading to a sharp increase in sales. “Consumers are increasingly leaning towards economy segment cars priced between ₹10 lakh and ₹15 lakh, which offer good features,” said R. Somashekar, senior manager at Toyota. He said first-time buyers form a significant portion of the current customer base. According to the latest vehicle registration data, the combined districts of Anantapur, Kurnool, and Kadapa are recording average monthly sales of around 1,500 cars. Among them, Kurnool district leads the tally with nearly 650 units sold every month. The district has a strong automobile retail presence, with over 15 company showrooms catering to diverse customer needs. Anantapur mirrors a similar trend in terms of showroom density and sales, while Kadapa, though slightly behind, is witnessing steady growth. “The automobile market in these three districts alone is generating a monthly business turnover of ₹230 crore to ₹250 crore,” said automobile sector analyst N. Kumaraswamy. He noted that the growth momentum has been particularly strong over the past year, driven by improved availability of models and quicker delivery timelines. Officials say the boom in car sales is significantly boosting government revenues. “More than 60 per cent of GST collections are currently being generated from automobile sales,” said a senior Commercial Tax officer from Kurnool. In financial year 2025–26, the erstwhile Kurnool district alone recorded GST collections of nearly ₹900 crore. Of this, approximately ₹550 crore came from vehicle sales, underlining the sector’s growing fiscal importance. Automobile dealers and industry insiders point to multiple factors enhancing customer confidence. “Simplified registration procedures, availability of multiple financing options, and a wide range of models across price segments are encouraging more people to invest in cars,” said R. Maheshwara Reddy, a senior marketing manager at a car dealership in Kadapa. He highlighted that improved after-sales service networks and the presence of authorised service centres in district headquarters have reduced maintenance concerns among buyers. Sales data reveals that around 10,000 cars had been sold between October 2025 and March 2026 across the three districts. Nearly 80 per cent of these vehicles fall under the sub-₹15 lakh category, indicating strong demand for budget-friendly models. This marks a significant jump compared to the period before 2023, when monthly sales across the region ranged between 900–1,000 units. For many residents, owning a car is no longer a luxury but an aspiration and necessity. “I had been dreaming of buying a car for many years. With easier loan options, I have finally purchased a four-wheeler in March this year,” said N. Prabhakar, a chilli trader from Nandyal. With steady economic activity, expanding dealership networks, and favourable financing conditions, the automobile sector in Rayalaseema appears poised for continued growth.



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