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Auto Sales: Two-wheeler market gets long wings, highest ever sales shows growing rural economy

 

The Indian two-wheeler market has seen a massive month-on-month growth of 49.05 percent in November 2023. In which more than 22.47 lakh units have been sold as compared to 15.08 lakh motorcycles and scooters sold in the country in the month of October 2023. The increase in sales can be attributed to the festive period of Dhanteras and Diwali. Both these festivals are considered auspicious occasions to bring a new vehicle to the house.

It is also a known fact that a large number of two-wheeler sales come from rural markets.

However, the festive season must have definitely boosted sales. But such a huge increase in sales is not possible due to any one factor. This reflects strong buyer sentiment in rural markets due to the growing economy. However, the Federation of Automobile Dealers Association (FADA) says challenges remain as adverse weather conditions on Rabi farming could impact rural incomes, leading to a decline in sales in the near future.

Experts estimate that the recession may also impact the passenger car segment. However, the increase seen in November was contrary to many forecasts. So as long as the economy continues to grow and the policy environment remains good, India may continue to beat negative forecasts.

The month of November 23 also saw a year-on-year increase of 21.08 percent compared to the same month last year. In which more than 3.91 lakh additional two-wheelers were sold.

The two-wheeler industry achieved an all-time high sales figure last month. While the Indian auto retail industry recorded total sales of 28.54 lakh vehicles. Thus surpassing the previous high of March’20 when the industry had sold 25.69 lakh vehicles during the transition from BS4 to BS6. ,

Manish Raj Singhania, President, FADA, said, “For the two-wheeler category, the month witnessed a significant growth in auto retail, taking it to an all-time high retail, boosted by the festive fervor of Diwali and agricultural income. “Strong rural sentiments have led to a rise in GDP growth. New product launches and improved model supply further fueled market growth, while electric vehicle sales witnessed encouraging growth.”

 

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