Rural growth rate overtakes urban in India automobile sales
Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal and Odisha have recorded higher growth in auto sales than Karnataka, Tamil Nadu and Maharashtra in the last two years
It’s not merely a blip, but a sustained trend. For about two years, demand for two-wheelers and passenger cars in rural areas has outpaced that in urban areas. According to Antique Stock Broking Ltd, the share of eastern and northern regions has increased by 570 basis points for two-wheelers and 280 basis points for passenger vehicles, since fiscal year 2017 (see chart). During the period, the share of states in the south and west has declined. Hundred basis points make up one percentage point.
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