While the rest of India saw a slight increase in vehicle sales last month, Kerala seems to be moving in the opposite direction. Latest data from the Vahan dashboard shows that vehicle sales in the state have dropped significantly, hitting a two-year low in the passenger vehicle segment.
Nationally, around 3.56 lakh passenger vehicles were sold in February, a 3% rise from the previous year. But in Kerala, the figures tell a different story—only 12,626 vehicles were sold, marking an 18.46% drop compared to the same period last year. What’s more, sales nosedived from January’s 22,374 registrations. The last time numbers dipped this low was in April 2023, when only 9,610 vehicles were registered.
Two-wheeler sales also followed a downward trend, with 36,209 units registered in February, 7.22% lower than last year. The commercial vehicle sector wasn’t spared either, recording 3,907 registrations—a 14.09% decline.
Electric vehicles (EVs) have been making steady inroads in Kerala, but recent sales figures suggest a slowdown. According to a study by the Federation of Indian Chambers of Commerce & Industry (FICCI) and Yes Bank, Kerala accounted for 11.1% of India’s total EV market share last year. Yet, despite being second in EV adoption at the national level, the state saw a drop in registrations.
February saw only 6,313 EVs registered, a 9.09% decline from the previous year. In January, the number was higher at 8,059. Among fuel types, hybrid vehicles were the only category to see growth, while petrol (39,590), diesel (4,099), and CNG (1,379) registrations all recorded drops.
Industry insiders suggest that February often sees a natural slowdown in vehicle sales. Some buyers tend to hold off on purchases, waiting for March when dealers roll out better financial year-end offers.
Another possible reason? Price hikes. Since January, many manufacturers have increased the prices of nearly all models, which could have discouraged buyers. And let’s not forget the heavy discounts offered at the end of 2023—some potential February buyers may have fast-tracked their decisions and purchased vehicles in December instead.
The stock market’s dip in February might have also played a role. With financial uncertainty in the air, big-ticket spending like buying a new car might not have been high on people’s priority lists.
And then there’s the booming used car market. With more people opting for second-hand vehicles, new car sales might be feeling the pinch.
