6.6 % car sales grew, photovoltaic sales grew by 15.53 % on year in January: Fada

Auto sales grew by 6.6 percent year on January, according to the data of the FADA Federation (FADA). She said that the data is in line with the forecast of the previous January for the month of January.

The strong start was clear in all categories of vehicles, including two -wheel wheels, passenger vehicles, tractors and commercial vehicles. The two -wheeled sales increased by 4.15 % on an annual basis and 27.39 % based on the month, with urban markets expanding their share of 41.6 % in December to 43.7 % in January. FAD, which was launched on new models, demand in the marriage season, and improved financing options, stated the main engines of growth. However, concerns about high interest rates and rural liquidity challenges are still existing.

Passenger vehicle sales also showed significant growth, increasing by 15.53 % on an annual basis and 58.77 % per month, partly due to the purchases in December recorded in January. Urban areas have witnessed a rise in the market share, but rural areas recorded higher growth on an annual basis. These merchants attributed the improvement of demand and last year’s discount strategies, which helped change the records.

Commercial car sales grew by 8.22 % on an annual basis and increased by 38.04 % per month, with urban markets outperforming rural growth. High shipping rates and demand for the passenger holder contributed to this performance, although low cash flow and strict financing policies constitute challenges, especially in slow sectors such as cement and coal.

Inventory levels have improved, as it decreased from 50 to 55 days, indicating a better balance in the width.

With the approaching February, the sector maintains cautious optimism. According to a recent survey, 46 percent of merchants expect to grow, while 43 percent expect sales to remain flat, and 11 percent predict a decrease.

Positive factors such as the continuous marriage season, the launch of new products, and strategic promotions will maintain. However, challenges, including shorter working days, weak rural liquidity, inflationary pressures, and strict lending standards remain.

“Nevertheless, the retail trade in India is preparing to make modest gains if these opposite winds are eased. Since nearly half of the traders surveyed are still expected to rise, the collective sense of optimism prevails, which indicates indicates. Until the industry is ready to ride challenges in the short term and we look forward to brighter days.