India's automobile retail sales rose in September on a sequential basis, industry data showed on Thursday.
However, sales remained in the red on a year-on-year basis.
The Federation of Automobile Dealers Associations data showed that vehicle registration in September rose to 13,44,866 units from 11,88,087 units sold in August and a retail off-take of 11,42,633 units in July.
Nevertheless, on a YoY basis, September retail sales declined by 10.24 per cent to 13,44,866 units from 14,98,283 units off-take during the like month of last year.
Commenting on September performance, FADA President Vinkesh Gulati, in a statement, said: "With the government's persistent effort to unlock India, the month of September continued to witness automobile registrations on a rise as compared to previous months.
"Passenger Vehicles, for the first time, saw positive growth coming back on YoY basis. With social distancing on customer's mind coupled with the government's push to further normalise business conditions and banks becoming more considerate to finance vehicles, entry level passenger vehicles saw good demand, thus indicating a preference for personal transportation over public."
He cited new launches and vehicle availability played their part as catalyst.
"A lower base during last FY also helped the cause."
On a yearly comparison, passenger vehicles retail sales grew by 9.81 per cent to 1,95,665 units from 1,78,189 units off-take during the like month of last year.
In contrast, two-wheeler sales de-grew by (-) 12.62 per cent to 10,16,977 units from 11,63,918 units sold during September 2019.
Similarly, commercial vehicle sales sales de-grew by (-) 33.65 per cent to 39,600 units from 59,683 units sold during September 2019.
On the other hand, tractor sales grew by 80.39 per cent to 68,564 units from 38,008 units sold during September 2019.
"Tractor sales continued its dream run as Kharif sowing witnessed record progress of area covered till date when compared to last year," Gulati said.
"With good Rabi season resulting in good disposable income, rural market also saw its rub off effect on 2-wheeler, small passenger vehicles and small commercial vehicles."
He pointed out that overall, 2-wheeler, 3-wheeler, and commercial vehicles continued to march ahead on MoM basis and inched up to narrow their gap with last year's sale even though pre-Covid levels are yet to be seen across all categories. "While recently, the economic revival was mostly limited to rural India and impact of Covid-19 was still felt on larger states and urban centres, the top states which makes up half of India's economic output are now showing signs of revival as economic activities in these states are at its peak since lockdown began in March," he said.
"This has also helped in creating a demand for automobile sales."
In terms of near term outlook, FADA said it anticipates a high growth period during October and November which ushers in the festive season.