New Delhi, Oct 7
Led by robust two-wheeler (2W) retail sales, the Indian automobile market saw 6.55 per cent growth (year-on-year) in the first six month of current fiscal (FY25), as rural markets are set to spur demand going forward, a report showed on Monday.
The Federation of Automobile Dealers Associations (FADA) said that the April-September period saw 9.08 per cent sales growth in 2W, 7.58 per cent in 3W and 1.07 per cent in passenger vehicles (PVs).
However, consumer vehicles (CV) and tracker retail sales fell by 0.65 per cent and 8.82 per cent, respectively, as per the FADA data.
According to FADA President C.S Vigneshwar, “the Shraddh period further impacted sales negatively, leading to a YoY decline in retail sales across various categories”.
“Discounts and offers have been introduced across segments to stimulate demand, but these have yet to translate into a significant improvement in sales,” he added.
The southwest monsoon recorded 8 per cent above-normal rainfall, disrupting auto retail performance in several regions and negatively impacting demand and walk-ins.
According to FADA, the near-term outlook for automobile retail is cautiously optimistic as both Navratri and Diwali fall in the same month, creating strong expectations for a surge in vehicle sales.