New Delhi, March 5: Retail vehicle sales in India saw a remarkable increase in February. The total sales reached 2.409 million units, marking a 25.62% rise compared to the previous year. This figure surpasses the previous record set in February 2024, according to the Federation of Automobile Dealers Associations (FADA).
The growth was evident across nearly all vehicle segments. Year-on-year, two-wheeler sales climbed by 25.02%, three-wheeler sales rose by 24.39%, passenger vehicle sales increased by 26.12%, and commercial vehicle sales surged by 28.89%. This indicates strong demand for both personal and commercial vehicles.
FADA reported that dealer confidence remains high for March. About 75.51% of dealers expect sales to continue rising, while 19.90% anticipate stable sales, and only 4.59% predict a decline.
Tractor sales also experienced impressive growth, with a robust increase of 36.35%, making it the fastest-growing segment for the month.
However, the construction equipment sector was the only segment that did not set a new record, experiencing a slight decline of 1.22% year-on-year.
FADA noted that the strong market performance in February reflects the confidence generated by government policies, particularly after the implementation of GST 2.0, which has enhanced stability and trust in various vehicle segments.
Retail sales of two-wheelers reached 1,700,505 units, up by 25.02%. Dealers attributed this growth to good harvests, improved cash availability in rural areas, attractive marketing schemes, and favorable pricing changes following GST adjustments.
Commercial vehicle sales totaled 100,820 units in February, marking a 28.89% increase year-on-year. Dealers across the country reported that better freight transport, stable e-commerce activities, and infrastructure-related demand have driven the purchase of new vehicles.
Passenger vehicle retail sales stood at 394,768 units, reflecting a 26.12% increase. Urban markets saw a growth of 21.12%, while rural markets experienced a significant rise of 34.21%. This trend indicates a rapid increase in vehicle demand not only in metropolitan areas but also in rural and small-town regions.
According to the report, the rising demand in rural areas is particularly supporting the sales of small cars, although SUVs and utility vehicles still contribute significantly to total sales.
– DBP/
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