Retail sales of two-wheelers recorded a strong growth of 14% during the festive season (October 3 to November 13). This information was given in a report on Monday. The splendor of the Christmas holidays and the improvement in rural demand were the main reasons for this growth. Credit rating agency ICRA has projected a growth of 11-14% in wholesale sales of two-wheelers in fiscal 2025. The main factors will be substitution of demand and improvement in demand due to good performance of monsoon in rural areas.
“Retail sales of passenger vehicles grew 6% to 6.5 lakh units during the festive season,” the report said. “This growth was driven by attractive discounts and competitive financing rates.” However, despite 6% year-on-year growth in retail sales between April and October FY25, high inventory levels in the industry impacted wholesale sales growth.
Dealers said there was a significant increase in customer footfall and bookings at showrooms during festivals. Demand and sales requests remained strong, especially in rural and semi-urban areas. A tremendous increase in demand was observed from Navratri to Diwali.
According to the report, “The recently concluded festive season has brought positivity to the automobile industry. “Most segments experienced moderate to good growth in retail sales, however, it was not as strong in commercial vehicles.”
Total sales of two-wheelers in the country increased by 14.2% to 21.64 lakh units in October 2024 from 18.96 lakh units in October 2023. At the same time, sales of passenger vehicles (including cars and SUVs) reached 3.93 lakh units in the month of October, showing a growth of 0.9% over the elevated base of 3.9 lakh units in October 2023.
According to experts, the credit for this growth is due to the improvement in rural incomes. This year, normal monsoon led to better agricultural production, which increased income in the agricultural sector and increased the demand for two-wheelers.
