India car sales: Car sales touch record mark in February amid better supplies and strong consumer demand

As per data available with industry body Society of Indian Automobile Manufacturers (SIAM), as many as 370,786 cars, sedans and utility vehicles were sold last month, which is an increase of 10.8% over 334,790 units reported in the same period last year.

This was the third highest monthly sales on record, behind 3,94,500 units the previous month and 3,91,811 units in October 2023. Automakers in India mostly report wholesale dispatches from factories to dealerships and not retail sales to customers.

While three-wheeler sales increased 8.3% to 54,584 units in February, those of two-wheelers went up by 35% to 1,520,761 units on back of a resurgence in demand particularly in rural markets.

Rajesh Menon, Director General, SIAM, said, “Passenger vehicles reported its highest ever sales of February posting sales of 3.7 lakh units with a growth of 10.8%, compared to February 2023. Three-wheelers also reported moderate growth of 8.3% posting sales of about 0.55 lakh units in February 2024. Two-wheelers posted an appreciable growth of 34.6% compared to February 2023 posting sales of 15.2 lakh units.” Sales of commercial vehicles, though, dipped last month due to cyclicity of demand.

Vinod Aggarwal, President, SIAM, said, “Overall robust GDP growth of the country in Q3 of 2023-24 has helped the auto sector, the industry expects the growth momentum to continue.”

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