DOGRA HERALD BUREAU
jammu, Jan 8
The Federation of Automobile Dealers Associations (FADA) Jammu has released the Vehicle Retail Data for Calendar Year 2024 (CY’24) and December 2024, reflecting a mixed performance across various vehicle categories in the Union Territory of Jammu and Kashmir.
For CY’24, the overall retail sales grew by 4.45%, with total sales at 1,79,164 units compared to 1,71,536 units in CY’23. The 2-Wheeler segment led the growth, increasing by 9.79% with 93,033 units sold compared to 84,734 units in CY’23. Similarly, the 3-Wheeler category witnessed significant growth of 17.11%, with 13,369 units sold compared to 11,416 units in the previous year. The Tractor category also saw a robust growth of 19.51%, with 3,749 units sold against 3,137 units in CY’23.
However, not all segments recorded growth. The Commercial Vehicle (CV) category experienced a decline of 5.35%, with 11,067 units sold compared to 11,693 units in CY’23. The Passenger Vehicle (PV) category also witnessed a contraction of 4.31%, with 57,946 units sold compared to 60,556 units in CY’23.
For December 2024, total retail sales fell by 5.53%, with 10,075 units sold compared to 10,665 units in December 2023. The 2-Wheeler and 3-Wheeler categories saw declines of 9.54% and 16.46%, respectively. Similarly, the CV segment recorded a sharp drop of 17.06%. Meanwhile, the PV segment showed marginal growth of 0.19%, and the Tractor category saw a significant rise of 33.85%.
Industry Perspective
Sanjay Aggarwal, Chairperson of FADA Jammu, attributed the yearly growth to the resilience of the auto retail sector despite challenges such as heat waves, elections, and uneven monsoons. He highlighted the strong performance in the 2-Wheeler, 3-Wheeler, and Tractor segments, which grew by 9.79%, 17.11%, and 19.51% YoY, respectively. However, the PV and CV segments experienced degrowth of 4.31% and 5.35%, respectively. Looking ahead, Aggarwal expressed cautious optimism for January 2025. He noted that nearly half of the auto dealers expect growth, 41.22% foresee stable demand, and only 10.69% anticipate a decline. Factors such as improved Minimum Support Price (MSP), increased rural fund inflows, and new vehicle launches are expected to support growth in the 2-Wheeler and PV segments. However, challenges like financing constraints and potential price hikes may moderate gains.
“The rise of EVs is expected to impact the entry-level 2-Wheeler market, while upcoming promotions and the wedding season could drive demand in the PV category,” said Aggarwal. He emphasized the need for Original Equipment Manufacturers (OEMs) to align their supplies with market demand and highlighted the importance of supportive government measures to sustain the momentum.
FADA remains optimistic that market recovery, strategic OEM support, and clear policies will drive robust performance in CY’25, ensuring continued growth for the automotive retail sector in Jammu and Kashmir.
