Festive mood uplifts auto retail numbers in September as rural demand picks up

Vehicle registrations in India, which is a proxy of retail sales in the country, witnessed a 20 per cent surge in numbers in September this year compared to the same month a year ago, reported automobile retailer's apex body Federation of Automobile Dealers Associations (FADA). It has attributed the double-digit growth in retail numbers for vehicle sales to the consumer sentiment upliftment due to the festivities as well as to the demand surge in rural markets.

FADA has said that the passenger vehicles (PV) segment witnessed a growth in retail numbers by 19.03 per cent in September this year compared to the same month a year ago. In September this year, the passenger vehicle segment registered retail sales of 332,248 units, compared to 279,137 units registered in the same month of the previous year.

In the two-wheeler segment too, FADA has reported double-digit growth. The retailer's apex body has reported that two-wheeler registrations increased by 21.68 per cent in September this year to 13,12,101 units, up from 10,78,286 units recorded in September 2022.

Indicating a demand and sales recovery, FADA has noted that this growth in the overall retail landscape signals a healthy recovery. It further stated that the two-wheeler segment, for the first time, showed a growth of two per cent, potentially marking the beginning of a turnaround in rural markets. It also said that the monsoon patterns with the rainfall in September alleviated the drought fears in the country. This recovery in rainfall has helped uplift the rural consumers' sentiment, who contribute a sizeable chunk to the sales of two-wheelers as well as SUVs, the segment that has been pushing the passenger vehicle sales at a large number. FADA expects the festive season in October will further boost sales in both passenger vehicle as well as two-wheeler segments.