Updated January 21st, 2024 at 13:58 IST
Rural India's two-wheeler sales rises by 620 bps, urban states sees 40 bps growth
India's rural regions registered higher automotive sales than the nation's urban regions in the two-wheeler and passenger vehicle verticals
Trend Reversal: In the fiscal year 2023, India's rural regions registered higher automotive sales than the nation's urban regions in the two-wheeler and passenger vehicle verticals, as per an Prabhudas Lilladher report.
In the two wheeler space, the retail sales witnessed a growth by 290-bps year-on-year (YoY) over the last four months, as against the current year (CY) 2023.
The increase in buoyancy in rural areas, and offsetting of urban modernisation has occurred as a result of higher replacement demand, positive consumer sentiment, marriage season demand, and increased affordability due to lower down payment, according to a Prabhudas Lilladher report.
The rural states recorded a growth by 620bps annually in the last 4-months outpacing CY23 growth by 620 bps, while the urban states saw its growth moderating by 40bps, according to the financial services organisation's report.
The lower cc segment is poised to benefit from higher mix in rural areas, while the expectations from domestic 2W growth should remain robust in Q4 FY 2024, it claimed.
In the passenger vehicle (PV) segment, urban regions again witnessed an increased moderation of 300 bps at 11.5 per cent in CY 2023 as against 14.4 per cent asin CY 2022.
The rural region saw a 11.4 per cent in CY 2023, while the urban region witnessed a moderated growth of 9.1 per cent in the same period.
According to the financial analysis of passenger vehicles' retail sales data over the last four months, this automotive vertical registered an annual growth of 12 per cent, as against 11.5 per cent in CY23.
The urban region posted a 10.9 per cent growth in the same segment,180 bps higher than CY 2023, while the rural states grew 12.1 per cent annually, 75bps higher than for CY23.
Published January 20th, 2024 at 19:27 IST