Indian automobile retail sales as denoted by new registrations across all vehicle categories recorded a growth of 13 percent year on year in February this year, data released by Federation of Automobile Dealers’ Association (FADA) showed on Thursday, March 7.
According to FADA, passenger vehicle retail sales were up 12 percent, commercial vehicles five percent, two-wheelers 13 percent and three-wheelers by 24 percent.
Improved customer sentiment and the introduction of new models resulted in high demand for passenger vehicles but the high inventory levels at 50-55 days at present are a significant concern, FADA president Manish Raj Singhania said.
“The commercial vehicle segment grew by five percent, overcoming challenges through fleet purchases and school buses, strong sectoral demand and improved financing, despite obstacles like cash flow shortages and election-related purchase deferrals, highlighting the sector's resilience and gradual recovery,” he added.