Retail sales of autos in India jumped 16% to about 1.8 million models in February, helped in half by sturdy demand throughout the marriage ceremony season, an trade physique of car sellers stated on Monday, including that festivals may push the sales greater in March.
Sales have picked up in the final two months as chip shortages eased and automakers launched new fashions to faucet into the demand forward of the pageant and marriage ceremony seasons. However, rising rates of interest amid elevated inflation are seen as a sentiment dampener, with total sales in February nonetheless under pre-COVID ranges.
Sales of two-wheelers superior 15%, whereas these of three-wheelers jumped 81%, passenger autos 11%, tractors 14%, and business autos 17%, the Federation of Automobile Dealers Associations (FADA) stated in an announcement.
Changes in emission norms from April, which might see vehicle costs enhance, and automakers rolling out promotional presents in the ultimate month of the fiscal 12 months, ought to assist push sales greater in March, FADA added.
The trade physique cited a slew of festivals, together with the two-day pageant of colors – Holi, and regional new 12 months celebrations Ugadi and Gudi Padwa, for the anticipated demand pull in March.
FADA publishes retail sales information, whereas the Society of Indian Automobile Manufacturers (SIAM), which often releases information in the second week of the month, counts autos bought to sellers.
Auto sales numbers are keenly watched, as they’re one of many key indicators to evaluate non-public consumption and carry greater than 50% weightage in calculating the nation’s financial progress.
Meanwhile, the trade physique warned that predictions of a return of El Niño climate situations in the Pacific, which may imply a weaker monsoon in India and outcome in decrease output and better costs, could also be a dampener for sales of economic autos.
Two of India’s high three listed bike makers TVS Motor Company and Hero MotoCorp beat home sales estimates in February as chip provide shortages eased.
The three-wheeler phase continued to witness sturdy demand after the federal government subsidies breached pre-pandemic ranges for the primary time in February, FADA stated.
