In April 2023, India's retail car sales soared to a record 407,355 units, marking a 12.2% increase from the previous year, according to the Federation of Automobile Dealers Associations. This surge was attributed to favorable conditions such as rate cuts from last September, easier financing, and robust demand from rural and smaller town markets. Overall vehicle retail sales also reached an all-time high of 2.6 million units, reflecting a 12.9% increase. Notably, rural car sales jumped 20.4%, significantly outpacing urban sales growth of 7.1%. Despite these positive figures, dealers expressed concerns about the potential impact of the ongoing crisis in the Middle East, which could lead to higher crude oil prices and subsequently affect fuel costs. Additionally, while inventory levels are currently healthy at around 28 to 30 days, dealers cautioned manufacturers to slow down dispatches as demand typically softens during the summer months.