Passenger vehicle retail sales may rise 15–16% in September, says Yes Securities, as festive demand holds firm despite uneven rainfall and selective price increases.

Passenger Vehicle Retail May Grow 15–16% |

Mumbai: Passenger vehicle retail sales in India could grow 15–16 per cent in September, supported by steady consumer demand and refreshed product line-ups, according to a Yes Securities research report.

India’s automobile retail market remains on a positive footing ahead of the festive season. Dealers expect year-on-year growth across most vehicle categories, although uneven rainfall is beginning to temper confidence in parts of the country.

The report said demand remains strong enough to support double-digit retail growth in segments other than tractors. However, dealers in northern, eastern and southern markets are becoming more cautious about the effect of uncertain monsoon conditions.

Passenger Vehicles And CNG Models

In the passenger vehicle segment, updated models are helping sustain showroom enquiries and dealer sales. Manufacturers are also introducing selective price increases of 0.3–0.4 per cent to offset higher raw material costs.

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Yes Securities said recently launched CNG models with automated manual transmissions could widen the appeal of CNG cars among private urban buyers. Early enquiries indicate interest in the combination, which addresses a gap in existing product ranges.

Two-Wheelers And Commercial Vehicles

Urban demand is leading two-wheeler sales. September retail growth in cities is tracking at about 15 per cent, while rural growth is estimated at 8–10 per cent. The report linked the slower rural pace to erratic rainfall and calendar factors, including Adhik Maas.

Commercial vehicle enquiries remain steady despite the segment’s usual September softness. Manufacturers are rebuilding dealer inventories from roughly 20–22 days to about 30 days ahead of anticipated price increases of 1–2 per cent in October.

Tractors Face A Slower Month

Tractor retail sales are expected to remain flat or post only low-single-digit growth. Rainfall deficits in parts of northern and eastern India have weakened rural buyer confidence, making tractors the exception to the broader auto retail recovery.

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