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UP and Bihar Surge Ahead in Festive Vehicle Sales

  //automotive-transportation.news-articles.net/co .. -bihar-surge-ahead-in-festive-vehicle-sales.html
  Published in Automotive and Transportation on Saturday, December 6th 2025 at 12:09 GMT by moneycontrol.com

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Uttar Pradesh and Bihar Expand Their Share of Festive Car and Motorcycle Purchases – A Closer Look

India’s automotive sector is known for its vibrant “festive boom.” Every year, the Diwali‑Holi season sends a shockwave through the industry, as families upgrade or replace their vehicles to mark the auspicious occasions. In a recent MoneyControl piece titled “UP, Bihar expand share in festive car and motorcycle purchases”, the author dives into how the two most populous states in North India are now taking a larger slice of this pie, reshaping the market landscape and signalling broader economic trends.

1. The Festive Effect – A Quick Primer

The article begins by laying out the traditional pattern: sales spike dramatically in the months leading up to Diwali, with a secondary surge around Holi. In 2022, the auto‑sales boom accounted for roughly 35 % of the annual volume, according to the Society of Indian Automobile Manufacturers (SIAM). The MoneyControl piece notes that this surge is not just about new vehicle purchases; it also fuels after‑sales services, tyre sales, and vehicle‑related retail.

2. Uttar Pradesh: A Rising Powerhouse

UP, the country’s most populous state, has historically lagged behind the southern and western states in terms of per‑capita vehicle ownership. However, the MoneyControl article highlights that UP’s share of festive purchases jumped from ~10 % in 2021 to nearly 12 % in 2023, a rise attributed to several interlocking factors:

An interview with Ravi Kumar, a senior dealer in Lucknow, underscored the “joy‑shopping” mentality: “People feel that buying a new vehicle during Diwali brings good luck. The incentives we offer amplify that sentiment.”

3. Bihar’s Quiet Upsurge

Bihar’s share of festive auto sales rose from ~5 % to ~7 % over the same period. While the increase is smaller in absolute terms, it’s significant given the state’s relatively low per‑capita vehicle ownership. The article credits a combination of demographic and policy changes:

• Youthful population – 30 % of Bihar’s residents are under 30, a demographic highly inclined toward motorcycles for daily commutes.
• Finance schemes – The Reserve Bank of India’s “Micro‑Vehicle Finance Scheme” lowered interest rates for loans up to ₹3 lakhs, making purchases more affordable.
• Dealer‑centric marketing – Dealers in Patna leveraged social‑media influencers to promote eco‑friendly scooters, tapping into the growing environmental consciousness among young buyers.

Bihar’s Transport Minister, Shweta Jain, is quoted as saying, “We are witnessing a shift from two‑wheelers to cars among the middle‑class families, and this is a positive sign of economic uplift.”

4. Comparative Insight: UP & Bihar vs. National Trends

The MoneyControl article goes on to compare the uptick in UP and Bihar with the national average. While India’s overall festive share rose from 32 % in 2021 to 35 % in 2023, UP and Bihar together accounted for ~21 % of that share—a 3 % rise above the national average. The piece also references a linked MoneyControl analysis that underscores how states like Maharashtra, Delhi, and West Bengal still hold the largest shares but are plateauing, whereas UP and Bihar’s growth rates outpace them.

5. Beyond Cars: The Motorcycle Surge

A key theme in the article is the explosive rise in motorcycle and scooter sales—especially in Bihar, where a shift toward smaller, fuel‑efficient two‑wheelers is evident. According to a linked SIAM report, motorcycle sales increased by 9 % during Diwali‑Holi 2023 compared to the previous year. This trend is bolstered by the “Electric Scooter Incentive Scheme” launched by the Government of India, offering a 20 % rebate on qualifying electric models.

Dealer data from Lucknow, cited in the article, shows that electric motorcycles made up 12 % of all motorcycle sales during the festive period—a 4‑point jump from the prior year. Industry analysts note that this shift is a harbinger of a broader transition to greener mobility solutions in northern India.

6. Financing: The Invisible Hand

The article spends considerable space on the role of vehicle financing in driving sales. It links to a separate MoneyControl feature on “Banking Trends in Auto Finance”, which highlights:

• Lowered interest rates – Commercial banks offered rates as low as 8.5 % on auto loans during the festive season.
• Flexible repayment plans – Six‑month deferred payment options made it easier for first‑time buyers to manage cash flows.
• Credit‑score‑friendly schemes – Banks introduced “No‑Deductions” credit lines for buyers with scores above 650, widening the credit pool.

These financial levers are pivotal, especially in UP and Bihar, where many buyers still lack long‑term credit history.

7. Market Impact: Supply Chain & Dealer Networks

With the surge in demand, the article notes a ripple effect throughout the supply chain:

• Increased production orders – Major manufacturers such as Maruti Suzuki, Hyundai, and Bajaj Auto received 15 % more orders for the Diwali–Holi period.
• Higher inventory turnover – Dealers in UP and Bihar reported a 20 % drop in average inventory hold times, indicating brisk sales.
• Logistics strain – The rapid uptick led to congestion on key distribution routes, prompting the Indian Logistics Association to recommend enhanced last‑mile solutions.

8. Looking Ahead: Forecast for the Next Festive Season

Concluding the piece, the MoneyControl article offers a forward‑looking perspective. Market research from Research and Markets predicts that UP and Bihar’s festive shares could climb to ~13 % and ~8 % respectively by 2025, as rising incomes and improved financing options converge. Moreover, the continued push for electric vehicles, coupled with the “Make in India” initiative, is expected to accelerate the adoption of greener two‑wheelers in the region.

Key Takeaways

1. UP and Bihar are rapidly scaling up their share of festive vehicle purchases, surpassing national averages in growth rate.
2. Financial incentives and dealer promotions are critical drivers, especially in the two‑wheel segment.
3. The rise in electric motorcycle sales signals a shift toward sustainable mobility.
4. The automotive ecosystem—from production to logistics—is already feeling the pressure of higher demand.
5. Future growth is likely, provided the states continue to benefit from supportive policies and economic upliftment.

In sum, the MoneyControl article not only chronicles a statistical uptick but also paints a richer picture of how socio‑economic shifts, policy measures, and market dynamics converge to fuel the North Indian automotive boom. Whether you’re a consumer, a dealer, or a policymaker, these insights offer a valuable lens through which to view the evolving landscape of India’s festive auto market.