Auto Sales in India: The demand for Sports Utility Vehicles (SUV) cars is increasing rapidly in India. The news is that SUV cars introduced by domestic and foreign companies have looted the market. This is the reason why they have had bumper sales during January 2024. However, due to these SUV cars, there have been record sales of passenger cars and other passenger vehicles. According to data released by the Federation of Automobile Dealers Association (FADA), passenger vehicle (PV) sales increased by 13 percent year-on-year to 3,93,250 units in January, from 3,47,086 units in January 2023. However, during this period the sales of two-wheelers and tractors were better than last year.
How did the demand for SUV cars increase?
FADA President Manish Raj Singhania said in the statement that the surge in sales was due to the introduction of new models, more availability of passenger vehicles in the market, effective sales, consumer schemes and high demand for SUVs due to the wedding season. He said there is a need to renegotiate production with OEMs to better align with actual market demand and avoid ‘oversupply’ issues in future. He said OEMs (Original Equipment Manufacturers) must balance innovation with strategic production planning to ensure continued success and overall market stability.
Sales of two-wheelers increased by 15 percent
According to FADA, sales of two-wheelers increased by 15 percent year-on-year in January to 14,58,849 units. At the same time, sales of commercial vehicles remained stable at 89,208 units last month. Retail sales of three-wheelers increased by 37 percent to 97,675 units last month from 71,325 units in January 2023.
21 percent increase in tractor sales
Along with this, in the statement issued by FADA it has also been said that tractor sales increased by 21 percent on annual basis to 88,671 units. Total retail sales increased by 15 percent year-on-year to 21,27,653 units in January, which was 18,49,691 units in January 2023.