Two-wheeler sales in September may point to early signs of a turnaround in rural markets, the Federation of Automobile Dealers Association said on Monday.
The introduction of new models and attractive promotional offers increased demand, especially in rural areas, leading to improved market sentiments, according to FADA.
"Compared to the pre-pandemic period, the overall retail landscape exhibited a massive 14% growth, signalling a healthy recovery," it said in a press release. "The two-wheeler category, for the first time, showed a growth of 2%, potentially marking the beginning of a turnaround in rural markets."
Two-wheeler sales in September rose 22% compared to last year to 13.1 lakh units as demand improved ahead of the festivals.
Better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season, the country's apex dealers' body said.
The two-wheeler sales in the country are yet to recover to the levels seen before the Covid pandemic, as demand for entry-level motorcycles, especially in rural markets, was hit due to the gap in buyers' purchasing power and the cost of vehicles.
Implementation of new emission norms and a surge in commodity prices led to price hikes that were disproportionately higher than the increase in income levels of buyers.
As a result, domestic two-wheeler sales dropped 25% to 1.59 crore units in the last fiscal from the peak sales of fiscal 2019.
FADA expects sales to slow down due to the inauspicious period in the first half of October. However, the sales are expected to pick up with festivals like Durga Puja and Navaratri in the latter half.
The sales in other categories have also increased ahead of festivals, with three-wheeler sales hitting a record monthly high in September.
Auto Retail Sales In September (YoY):
Passenger vehicle sales rose 19% to 3.32 lakh units.
Two-wheeler sales rose 22% to 13.1 lakh units.
Commercial vehicle sales rose 5% to 80,804 units.
Three-wheeler sales rose 49% to 1.02 lakh units.
Tractor sales fell 10% to 54,492 units.
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