Fast growing rural demand along with urban demand for cars has propelled a rise in vehicle sales in September, setting the momentum for Navratri and Diwali sales. According to data by the Union ministry of road transport and highways, two-wheeler sales clocked a 66% rise in September whereas car sales went up by 8% compared to the corresponding period last year.
“The overall demand for cars is certainly good as the supplies have streamlined from manufacturers and deliveries are taking place in time. Since car inventory levels are at an optimum, the deliveries are good as well,” said Jigar Vyas, CEO of an Ahmedabad-based car dealership.
The premium segment cars and SUVs and MUVs are primarily driving the demand for cars. The demand in the coming couple of months is expected to remain high on account of the festive season and muhurat purchases, coupled with discounts offered by dealers which include free insurance, cash discounts and exchange bonuses, among others.
Dealers, however, have raised their concerns about the rise in the turnaround time for delivering cars after affixing number plates, especially after the regional transport office notified the new rules.
“This will give rise to bottlenecks in the festive season. Dealers will not be able to make spot bookings for cars in the inventory. Spot bookings are often done on auspicious muhurats like Navratri, Dussehra and Dhanteras. This time, we will have to close the bookings about five days to a week in advance for deliveries scheduled on muhurat days,” said an Ahmedabad-based car dealer.
According to vehicle dealers, the growth rate of car and two-wheeler sales is much higher in the rural areas, thanks to good monsoon and improved agriculture earnings, compared to urban areas.
The vehicle registration data with the RTO reveals that the January 1-September 31 period recorded the highest four-wheeler sales in the past five years. In the first nine months this year, 2.42 lakh vehicles were sold in the state against 2.40 lakh in the nine months of 2022 and 1.92 lakh and 1.30 lakh vehicles in the corresponding periods in 2021 and 2020 respectively.
Explaining the trend, Pranav Shah, ex-chairman, Gujarat, Federation of Automobile Dealers’ Association (FADA), said, “Two-wheeler sales was driven by the rural market this time instead of the urban market. Demand for gearless two-wheelers is particularly high in addition to high-end motorcycles here. Even electric vehicle sales is picking up well.”
