Ahmedabad: Gujarat's automotive sector celebrated a milestone as vehicle sales hit a new high in Oct, with 2.94 lakh units retailed during the month. This represents a 33.4% increase from the same month last year. The state's growth rate surpassed the national average, which stood at 32% with 20.65 lakh units sold across India, according to the data from the Federation of Automobile Dealers' Association (Fada) Gujarat.
Fada Gujarat reported substantial growth across all vehicle segments. Two-wheelers in particular saw a year-on-year increase of 40.6%, surpassing the national average, while passenger vehicle sales rose by 28.6%.
A senior officer at the regional transport office (RTO) said, "This year, all the auspicious days for vehicle purchases, such as Dussehra, Diwali, Navratri and Dhanteras, fell in Oct. This was a key factor in driving up vehicle sales during the month. We expect a moderate decline in sales figures over the next couple of months."
According to FADA, new models and improved inventory levels helped dealerships meet increasing customer demand. Some dealers also reported that their stock of entry-level cars was sold out due to high demand.
Pranav Shah, chairman of FADA – Gujarat, stated, "Dussehra and Dhanteras were the major growth drivers for vehicle sales in Oct, which spelled good news for dealers of two-wheelers and cars. Attractive festive financing schemes, the availability of new models, and well-stocked dealerships led to strong demand. The strong performance in rural markets has even outpaced urban demand."
"The rural market proved instrumental in driving the sales, particularly of two-wheelers and passenger vehicles. Govt support in the form of increased minimum support prices (MSP) for rabi crops and a favourable monsoon strengthened rural sentiment and purchasing power, further boosting sales," he further explained.
In Gujarat, SUVs remained the dominant choice, yet there was also renewed interest in entry-level vehicles. With roughly 75% of car buyers opting for financing, lenders provided enticing loan offers that encouraged buyers across market segments to make their purchases.
"With an estimated 4.8 million weddings scheduled in Nov and Dec in the country, the wedding season is expected to sustain demand for both two-wheelers and passenger vehicles. Alongside positive rural sentiments and good crop yields, the state's automotive sector looks set to close the year on a high note, further affirming Gujarat's importance in India's vehicle market," FADA states.