Riding on a robust demand for two- and three-wheelers, cars and tractors, Gujarat has seen a 35% uptick in vehicle sales in July.
The Federation of Automobile Dealers’ Association (FADA), which shared the data, attributed this growth to a good monsoon, the upcoming festive season and reopening of schools and colleges.
Hitendra A. Nanavati, chairman, FADA – Gujarat, said, “Gujarat stands tall with an approximate 35% year-on-year growth in July compared to the 10% pan-India growth during the same period. This has arisen from a robust demand, good positivity along with an equally good monsoon so far.”
According to dealers, the month saw a surge in orders and timely OEM supplies, especially with the introduction of new products. Overall, new launches kept the momentum up for most players especially in the MUV and compact SUV segments.
Explaining the trend, Pranav Shah, former chairman, FADA – Gujarat, said, “The momentum which began in the two-wheeler segment back in June, continued into July. The reopening of schools and colleges has also contributed to this segment’s significant growth. In passenger vehicles, SUVs continued to remain a popular choice. Compact SUVs and MUVs drove the robust demand and new launches in this segment kept consumer sentiment upbeat, as a result of which sales remained good during the month.”
A good monsoon fuelled a steady revival in demand from rural areas. According to FADA, the inventory for passenger vehicles has surpassed the 50-day mark and currently hovers between 50 and 55 days, suggesting a stock build-up in anticipation of the forthcoming festive season.
FADA’s near-term outlook says that the passenger vehicles segment is likely to benefit from the festive euphoria, new product introductions and high demand in SUV category. However, concerns over declining demand for entry-level segment continues to remain.
