Increase in vehicle sales despite price hike
MUMBAI: Auto retail sales grew by 12.5 per cent year-on-year to a total of 12.5 lakh units in August, on the back of strong sales in seasonal vehicles and strong recovery in commercial vehicles. Sales of off-road vehicles covering cars, SUVs and vans rose by 3% to 7 vehicles in August. The Federation of Automobile Dealers Association (FADA) said in a statement that sales had increased despite the rise in petrol and diesel prices and vehicle prices. In addition to newer models of vehicles, lower interest rate loans have also been supportive of sales growth. The shortage of semiconductors also forced some units to shut down last month. Sales of commercial vehicles grew by 2.4 per cent while tractors grew by 2.50 per cent. Sales of three-wheelers have increased by 4.50%. Vehicle manufacturers have already announced that they will close production units for a few days in the current month as well, which is expected to keep stocks at dealers low during the festive season. Concerns hav...