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Rural India Overtakes Urban When It Comes To Automobile Sales
Sales of cars hit a record last fiscal as the number of cars Indian roads zoom.
Marking a sustained trend, the demand for two-wheelers and passenger cars in rural areas has outpaced that in urban areas. Revealing the trends since the fiscal year 2017 Antique Stock Broking Ltd said that the eastern and northern regions' share has increased by 570 basis points for two-wheelers and 280 basis points for passenger vehicles while shares of south and west declined reports Mint.
A detailed analysis on states shows states such as Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal and Odisha have shown strong sales growth while Karnataka, Tamil Nadu and Maharashtra, which have a higher urban mix in population, have been lagging in growth.
Monsoon divergence, state-level developmental infrastructure push, growth moderation in highly urbanised states, and improved organised finance penetration are major reasons for the regional difference in growth says Antique Stock Broking Ltd.
The demand outlook for financial year 2019 is strong with analysts having predicted double-digit growth in passenger vehicles, two-wheelers and even commercial vehicles, mainly backed by healthy demand from rural areas.
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