Sales of retail vehicles in India shot up 14 per cent on a yearly basis in March. Except for tractors, all categories saw double-digit growth, with two-wheelers, three-wheelers, passenger vehicles and commercial vehicles growing by 12 per cent, 69 per cent, 14 per cent, and 10 per cent, respectively, the Federation of Automobile Dealers Associations (FADA) data showed.
Tractors, however, only grew by 4 per cent. “US Government agencies have, for a third successive month, reiterated the possibility of El Nino’s arrival later this year. This may result in poor monsoon thus hampering rural India’s growth potential,” the federation said.
According to the federation, the two-wheeler segment demonstrated yearly growth but remains significantly below pre-pandemic levels, indicating that rural India is still bearing the burden of high inflationary costs. The three-wheeler segment achieved record-high retail sales, surpassing the previous high figures of March 2020 — which was a month when the industry made the transition from BS-4 to BS-6 emission norms. The two-wheeler category fell to a seven-year low with total retails of 15.9 million.
The three-wheeler category continued to grow at a healthy pace and was back to pre-covid levels.