BENGALURU, March 6 (Reuters) – Retail gross sales of automobiles in India jumped 16% to round 1.8 million items in February, helped partly by sturdy demand in the course of the marriage ceremony season, an business physique of vehicle sellers stated on Monday, including that festivals might push the gross sales larger in March.

Sales have picked up within the final two months as chip shortages eased and automakers launched new fashions to faucet into the demand forward of the competition and marriage ceremony seasons. However, rising rates of interest amid elevated inflation are seen as a sentiment dampener, with general gross sales in February nonetheless beneath pre-Covid ranges.

Sales of two-wheelers superior 15%, whereas these of three-wheelers jumped 81%, passenger automobiles 11%, tractors 14%, and industrial automobiles 17%, the Federation of Automobile Dealers Associations (FADA) stated in a press release.

Changes in emission norms from April, which might see car costs enhance, and automakers rolling out promotional provides within the last month of the fiscal 12 months, ought to assist push gross sales larger in March, FADA added.

The business physique cited a slew of festivals, together with the two-day competition of colors – Holi, and regional new 12 months celebrations Ugadi and Gudi Padwa, for the demand in March.

FADA publishes retail gross sales information, whereas the Society of Indian Automobile Manufacturers (SIAM), which normally releases information within the second week of the month, counts automobiles offered to sellers.

Auto gross sales numbers are keenly watched, as they’re one of many key indicators to evaluate personal consumption and carry greater than 50% weightage in calculating the nation’s financial progress.

Meanwhile, the business physique warned that predictions of a return of El Niño climate situations within the Pacific, which might imply a weaker monsoon in India and lead to decrease output and better costs, could also be a dampener for gross sales of business automobiles.

Two of India’s prime three listed bike makers TVS Motor Company (TVSM.NS) and Hero MotoCorp (HROM.NS) beat home gross sales estimates in February as chip provide shortages eased.

The three-wheeler phase continued to witness strong demand after the federal government subsidies breached pre-pandemic ranges for the primary time in February, FADA stated.

Reporting by Nishit Navin and Anisha Ajith in Bengaluru; Editing by Dhanya Ann Thoppil

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