Weddings and two other factors pushing car sales forward in India

  • FADA continues to point to several positive factors that are propelling car sales in the country.
File photo used for representational purpose.
File photo used for representational purpose.
View Personalised Offers on
Notify me

The passenger vehicle segment in the Indian automotive market continued with its upward surge in the month of February, as per data shared by Federation of Automobile Dealers Associations (FADA) on Monday morning. The sales of cars last month was up by 11 per cent vis-a-vis February of 2022 and an even more impressive 16 per cent when compared to the pre-pandemic month of February of 2020.

FADA continues to point to several positive factors that are propelling car sales in the country. Of these, the wedding season is one that is specifically pointed out where new purchases tend to be more frequent. But the more significant factors also are the continuation of new model launches that create an uptick in customer interest, often also translating into purchases and sales.

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
Alert Me When Launched
Hyundai Kona Electric (HT Auto photo)
BatteryCapacity Icon39.2 kWh Range Icon452 km
₹ 23.79 Lakhs
Compare
View Offers
Honda City Hybrid (HT Auto photo)
Engine Icon1498 cc FuelType IconMultiple
₹ 19 Lakhs
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
Alert Me When Launched
Mg Gloster (HT Auto photo)
Engine Icon1996 cc FuelType IconDiesel
₹ 38.80 Lakhs
Compare
View Offers
Land Rover Range Rover Sport (HT Auto photo)
Engine Icon2993 cc FuelType IconMultiple
₹ 1.64 Cr
Compare
View Offers

Another big factor helping car manufacturers is the gradual and continued easing of supply-chain-related issues. In the past, there has been a shortage of crucial components but the situation - although still far from perfect - has been improving. Most manufacturers report a healthy booking order and FADA notes that a healthy booking to cancellation ratio should auger well for the market at large.

Also Read : Maruti Suzuki says chip-shortage issue could persist for longer

But this in no way means the path forward is free from any challenges. FADA notes that the demand from the rural market has not yet fully recovered and that inflationary pressures could pose a risk to buying sentiments. It also leans on forecasts of El Nino returning as early as June to have an impact on monsoon in the country which, in turn, could potentially affect vehicle sales across categories and segments.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 06 Mar 2023, 09:33 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.