The Automobile Sales in Jammu & Kashmir witnessed a growth of 4.45% in CY 2024, defying various economic and environmental challenges. The Federation of Automobile Dealers Associations (FADA) Jammu recently released its annual report, highlighting the region’s resilience in maintaining steady growth.
A Year of Resilience for the Automobile Sector
In CY 2024, the total retail vehicle sales in Jammu & Kashmir reached 1,79,164 units, marking a 4.45% increase compared to 1,71,536 units in CY 2023. This growth came amidst significant headwinds, including extreme heatwaves, election activities at the central and state levels, and unpredictable monsoon patterns.
Sanjay Aggarwal, Chairperson of FADA Jammu, emphasized the industry’s adaptability:
“Despite multiple challenges in CY 2024, the auto retail industry in Jammu & Kashmir displayed remarkable resilience. The year ended with a 4.45% year-on-year (YoY) growth, showcasing the strength of the market and its potential for recovery.”
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Performance Across Vehicle Segments
While the overall market recorded positive growth, individual vehicle categories showed mixed performance. Here’s a closer look:
Growth Segments
- Two-Wheelers (2W):
The 2W segment grew by 9.79% YoY, reflecting its consistent popularity among consumers seeking affordable and fuel-efficient transportation options. - Three-Wheelers (3W):
This category saw an impressive 17.11% YoY growth, driven by increased demand in the commercial and passenger transport sectors. - Tractors:
Tractor sales surged by 19.51% YoY, underlining the significance of agricultural investments in the region.
Declining Segments
- Commercial Vehicles (CV):
The CV segment experienced a decline of -5.35% YoY, attributed to fluctuating economic conditions and reduced infrastructure activity. - Passenger Vehicles (PV):
PV sales also saw a minor decline of -4.31% YoY, despite strong demand in urban areas.
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Monthly Insights for December 2024
FADA’s report on December 2024 retail sales provided a snapshot of the year’s final month. Total vehicle retail sales for December 2024 stood at 10,075 units, a drop of -5.53% compared to 10,665 units in December 2023.
Category-Wise December Performance
- Two-Wheelers (2W):
Sales fell by -9.54%, with 3,319 units sold in December 2024 compared to 3,669 units in December 2023. - Three-Wheelers (3W):
This segment recorded a significant drop of -16.46%, with 939 units sold in December 2024 versus 1,124 units in December 2023. - Commercial Vehicles (CV):
A sharp decline of -17.06% was observed, with 739 units sold in December 2024 compared to 891 units in the previous year. - Passenger Vehicles (PV):
The PV segment bucked the trend with a marginal growth of 0.19%, selling 4,730 units in December 2024, slightly higher than the 4,721 units in December 2023. - Tractors:
Tractor sales experienced remarkable growth of 33.85%, with 348 units sold in December 2024 compared to 260 units in December 2023.
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Looking Ahead: Optimism for 2025
Despite setbacks in some segments, FADA remains optimistic about the future of Jammu & Kashmir’s automobile retail industry. Aggarwal stated:
“We are confident that market recovery, strategic support from original equipment manufacturers (OEMs), and policy-level clarity will drive robust growth in CY 2025.”
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The focus on sustainable development, rural investment, and improving consumer sentiment is expected to provide a strong foundation for further growth.
The automobile retail industry in Jammu & Kashmir demonstrated resilience in CY 2024, overcoming significant challenges to achieve a 4.45% growth. While certain segments faced setbacks, others flourished, highlighting the diverse dynamics of the market. With a positive outlook for 2025, the region’s auto retail sector is poised for continued progress.
