(Reuters) -Indian auto dealers expect higher sales through the rest of the year, after they reported a 40.5% on-year jump in overall vehicle sales to a record high in October, boosted by tax cuts and strong rural demand, the Federation of Automobile Dealers Associations (FADA) said on Friday.
October retail sales are the first since the goods and services tax (GST) cuts took effect on September 22.
Car sales in rural areas grew thrice as fast as compared to urban areas, while two-wheeler sales rose twice as fast, FADA said.
Among dealers, 64% expect sales to grow in November, while 8% expect a drop, the body said.
“Marriage season, harvest cashflows, and new launches to sustain momentum through year-end,” they said.
During the 42-day festival season, which included Dussehra and Diwali, overall retail sales climbed 21% on-year, led by a 22% climb in two-wheeler sales and 23% jump in passenger vehicle sales.
(Reporting by Meenakshi Maidas and Kashish Tandon in Bengaluru; Editing by Harikrishnan Nair)
