Indians bought 15.28 per cent more vehicles in 2022, even though the sales went down by 5 per cent in December, compared to the same month last year. According to data released by industry body the Federation of Automobile Dealers Associations, passenger vehicles and tractors were the highest selling category of automobiles in India, with sales hitting record levels for both.
Retail sales of bikes and scooters surged to more than 1.53 crore in 2022, which was 13.37 per cent higher than the previous year. For passenger vehicles, the number went up by 16.35 per cent to hit 34.31 lakh units. The December sales were dragged down largely because of a no show by the two-wheeler segment.
The slowdown in vehicle sales has been caused by inflation, higher cost of ownership, and a rural market yet to recover completely. Three wheeler sales were down throughout the pandemic, but have bounced back from CY2019 levels.
Better cash flow for farmers, thanks to minimum support price on crops and better procurement policies, helped drive tractor sales forward. Timely sowing of rabi crops also played a role in sustained growth of sales, while a normal festive season propelled demand further.
But FADA seens gloomy times ahead for the global auto sector because of the pandemic's effect still haunting the market and interest rate hikes making loans costlier.
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