(MENAFN- KNN India) New Delhi, May 9 (KNN) India's automobile industry is experiencing mixed fortunes as factors like improved vehicle supplies, new model launches, and favourable crop yields have boosted customer interest but the looming uncertainty around elections is casting a pall over auto sales.
The Federation of Automobile Dealers Associations (FADA) reported a 27 per cent year-on-year increase to 2.2 million units in April compared to the same month last year in overall retail vehicle sales.
Two-wheeler sales jumped 33 per cent year-on-year to over 1.6 million units last month, benefiting from better availability of entry-level 125cc motorcycles and scooters.
Passenger vehicle sales also climbed 16 per cent bolstered by new product launches and positive market mood ahead of the upcoming festive and marriage season.
"Improved supplies from automakers and expectations of a good monsoon supported demand from rural areas," said FADA President Manish Raj Singhania. However, he cautioned that uncertainty around upcoming elections and concerns over vehicle financing could act as dampeners, reported BL.
Commercial vehicle sales edged up 2.3 per cent amid a pickup in bulk orders from sectors like mining and construction. Three-wheeler and tractor volumes also rose modestly.
FADA remains optimistic about sales in the coming months due to new electric vehicle launches and sustained demand for conventional models.
(KNN Bureau)
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