New Delhi, Oct 6: India’s overall automobile retail sales rose 31.8 per cent year-on-year to 2.54 million units in September, according to data from the Federation of Automobile Dealers Associations (FADA).
The strong growth was supported by continued demand for two-wheelers and passenger vehicles, with tax cuts introduced last year also helping consumer demand.
However, tractor sales remained under pressure as weaker rural demand and below-normal monsoon rainfall affected the segment.
Dealers sold 76,906 tractors in September, down 12.6 per cent from 87,977 units in August.
The decline comes after India’s June-September monsoon rainfall was 12.6 per cent below normal. The monsoon accounts for nearly 70 per cent of the country’s annual rainfall and plays an important role in rural incomes and spending.
Poor and uneven rainfall can affect farm earnings and cash flows, leading farmers and rural households to postpone large purchases such as tractors.
The delayed festive season also weighed on tractor demand during September.
Despite the weakness in the rural-focused segment, the broader automobile market remained strong. Retail demand for two-wheelers and passenger vehicles continued to support overall sales.
Automakers have also raised vehicle prices to offset higher costs, but demand has remained resilient across several categories.
The upcoming festive season could provide another boost to automobile sales, particularly if rural demand improves and farm incomes strengthen.
The September data, therefore, presents a mixed picture for the auto industry: overall consumer demand remains strong, while rural and tractor sales continue to face challenges from weaker monsoon conditions.