Riding on the festive season, car and two-wheeler sales in Gujarat have gained momentum in the last few months. Car sales grew by 9 per cent this August with 25,782 vehicles sold, compared to 23,718 in August 2022, according to the Federation of Automobile Dealers’ Association (FADA), Gujarat.
Overall sales in the state have grown by 29% compared to 9% growth across India. Higher disposable incomes, the increment season and a good monsoon have fuelled urban and rural demand across the state.
According to FADA, improved vehicle supply and expanded customer schemes, helped maintain positive market dynamics.
The semiconductor chips, mostly in short supply last year, had caused manufacturing bottlenecks that had restricted the sales chart numbers, which is now over as deliveries have eased up.
Dealers say waiting periods for new cars have fallen significantly. In the entry-level segment, dealers have at least 30-40 days of stock. Discount offers are also expected on these segments to boost sales ahead of the festive season.
The market has responded favourably to the introduction of new hybrid and CNG models as well, which have fuelled the overall growth in the sector. “However, the constrained product range in popular segments, such as mid-size SUVs, continues to limit the overall potential of the market,” a statement from FADA said.
The two-wheeler segment has also grown significantly, enabling dealers to recoup past losses. According to FADA data, two-wheeler sales hit 87,134 units in August compared to 74,982 units in the same month last year.
An automobile expert said, the recovery in the two-wheeler market had been good due to good monsoon, as rural demand was clearly driving sales. The festive season was also keeping bookings upbeat. The attractive subsidy on electric two-wheelers was another reason for demand improving.
“Despite positive growth, consumer sentiment has remained ambivalent, affecting conversion rates and intensifying competition,” FADA said.