India’s automotive market roared into February with retail vehicle sales skyrocketing 25.62% year-on-year to a staggering 24.09 lakh units, shattering previous records from February 2024. The Federation of Automobile Dealers Associations (FADA) unveiled these impressive figures on Thursday, signaling robust consumer confidence across the nation.
This surge spanned nearly every segment. Two-wheelers led with a 25.02% jump, three-wheelers followed at 24.39%, passenger vehicles climbed 26.12%, and commercial vehicles posted the highest growth at 28.89%. Even tractors revved up 36.35%, emerging as the fastest-growing category. Only construction equipment saw a minor 1.22% dip.
Dealers are buzzing with optimism for March, with 75.51% expecting further sales increases, 19.90% anticipating stability, and just 4.59% bracing for a slowdown. This positive sentiment underscores a market fueled by government policies and post-GST 2.0 stability.
Two-wheeler sales hit 17,00,505 units, boosted by strong rural harvests, improved liquidity, enticing marketing schemes, and favorable pricing. Commercial vehicle dispatches reached 1,00,820 units, driven by booming freight, steady e-commerce, and infrastructure demands. Passenger vehicles sold 3,94,768 units, with rural markets surging 34.21% compared to 21.12% in urban areas.
Rural demand is particularly propelling small car sales, though SUVs and utility vehicles continue to dominate overall volumes. FADA attributes this boom to policy-driven trust translating into real demand, painting a bright picture for India’s auto sector as economic activities thrive.