Northeast India sees surge in vehicle sales in 2023
In a meeting held in Guwahati, the Federation of Automobile Dealers Associations (FADA) reported that the sale of vehicles in Northeast India in 2023 showed a significant increase compared to 2022, with a growth rate of 20.86 percent. This growth rate in Northeast India was much higher than the overall national growth rate, which was 6.30 percent.
The year-on-year (YoY) growth of vehicle sales in different states of Northeast India saw impressive increases. In Assam, the growth was 30.37 percent, while Arunachal Pradesh showed a growth rate of 21.75 percent. Meghalaya experienced growth at 40.45 percent, Nagaland saw an increase of 22.42 percent, Manipur had a growth rate of 38.61 percent, Mizoram recorded a growth of 22.03 percent, and Tripura had a growth of 13.61 percent. These positive trends indicate a thriving automotive market in the region.
In the case of Manipur, though the report showed a growth rate of 38.61 percent, it was quite low when compared with the last year’s vehicle sales. When the period from April to July in 2022 is compared to the same months in 2023, we see that vehicle sales in Manipur have decreased by a significant 50.10 percent. The reason in the decline could be due to the ongoing conflict between the Kukis and the Meiteis.
Manish Raj Singhania, the President of FADA, who was present in the meeting in Guwahati said that, “After the COVID-19 pandemic, Northeast India has seen a huge increase in the number of vehicles being sold. Government’s investment in infrastructure has played a major role in this growth.”
This indicates that the region is experiencing a boost in vehicle sales due to improved infrastructure and recovery from the pandemic. He also mentioned, “We anticipate a surge in sales during the festive season. We’ve asked the government to reduce the GST on entry level two-wheelers.”
Furthermore, he mentioned that Assam has already put into effect the Central Motor Vehicles Rules. “We urge the other Northeastern states to adopt these rules, which will make it easier to conduct business in the region.” This move will improve the business environment in these states.
