Image Source : PTI (FILE) Road traffic
Passenger vehicle retail sales surged to an all-time high in January, fueled by strong demand for sports utility vehicles (SUVs) and the ongoing wedding season, according to the Federation of Automobile Dealers Associations (FADA).
Last month, passenger vehicle (PV) sales reached 393,250 units, marking a notable increase of 13 per cent from 347,086 units recorded in January 2023.
FADA President Manish Raj Singhania attributed this robust performance to the rising demand for SUVs, bolstered by factors such as the launch of new models, enhanced availability, effective marketing strategies, consumer incentives, and the auspicious occasion of weddings.
Despite the record-breaking sales figures, Singhania expressed concerns regarding the inventory levels of passenger vehicles, which currently stand in the range of 50-55 days. He emphasised the need for original equipment manufacturers (OEMs) to adjust their production levels promptly to align with actual market demand, thereby averting potential oversupply issues in the future.
Singhania stressed the importance for OEMs to strike a balance between innovation and strategic production planning to ensure long-term success and stability in the overall market.
In the two-wheeler segment, sales saw a significant increase of 15 per cent year-on-year, reaching 1,458,849 units in January. Factors contributing to this growth include improved vehicle availability post-implementation of the OBD 2 norm, the introduction of new models, and a shift towards premium options, coupled with favourable market conditions such as a good harvest and the ongoing wedding season.
Commercial vehicle sales experienced stagnant growth last month, with 89,208 units sold. However, three-wheeler retail sales surged by 37 per cent to 97,675 units, compared to January 2023. Tractor sales recorded a 21 per cent year-on-year increase, reaching 88,671 units in January.
Overall, retail sales across all segments totaled 2,127,653 units in January, reflecting a robust growth of 15 per cent compared to January 2023.
(With PTI inputs)
READ MORE: RBI rules out review of action against Paytm Payments Bank, to issue FAQ to address customers’ concerns
READ MORE: Retail inflation eases to 3-month low of 5.1 pc in January 2024: Govt data