Car Sales See A Surge In Rayalaseema With Disposable Incomes And Loan Options
– KURNOOL: Car sales are witnessing a remarkable and sustained rise in the Rayalaseema region. Their demands are growing at an unprecedented pace.
Until a few years ago, auto sales in the region were 20 percent to 30 percent less than in other parts of the state. However, the scenario has now undergone a dramatic transformation. Rayalaseema has not only caught up; In some cases, the region has surpassed other regions.
Observers attribute this change to a combination of socio-economic changes and policy factors. The increasing desire of nuclear families to own personal vehicles, increasing disposable incomes and easy access to vehicle loans through flexible EMI options have played an important role. Additionally, the decline in GST rates on certain vehicle segments in the last few months has made vehicle ownership more affordable, leading to a sharp increase in sales.
“Consumers are increasingly turning to cars in the economy segment that are priced between ₹10 lakh to ₹15 lakh and offer good features,” said R. Somashekar, senior executive at Toyota. He said first-time shoppers make up a significant portion of the existing customer base.
According to the latest vehicle registration data, the combined districts of Anantapur, Kurnool and Kadapa record an average monthly sales of 1,500 cars. Among these, Kurnool district ranks first with around 650 units sold every month. The region has a strong auto retail presence with more than 15 corporate showrooms catering to diverse customer needs.
While Anantapur reflects a similar trend in terms of showroom density and sales, Kadapa is recording steady growth, albeit slightly behind.
“The automobile market in these three regions alone generates a monthly business turnover of ₹230 crore to ₹250 crore,” said auto industry analyst N. Kumaraswamy. He noted that growth momentum was particularly strong last year due to increased availability of models and shorter delivery times.
Officials say the boom in car sales has significantly increased government revenues. “More than 60 per cent of GST collections are currently from automobile sales,” said a senior Commercial Tax officer from Kurnool.
In the financial year 2025-26, the erstwhile Kurnool district alone recorded GST collections of around Rs 900 crore. Of this, around ₹550 crore came from vehicle sales, underlining the growing financial importance of the sector.
Auto dealers and industry insiders point to many factors that increase customer confidence. “Simplified registration procedures, availability of multiple financing options and wide range of models across price segments are encouraging more people to invest in cars,” said R. Maheshwara Reddy, senior marketing manager at an automobile dealership in Kadapa. He emphasized that the development of after-sales service networks and the presence of authorized service centers in regional centers have reduced buyers’ maintenance concerns.
Sales data reveals that nearly 10,000 cars were sold across the three regions between October 2025 and March 2026. Almost 80 per cent of these vehicles fall in the below 15 lakh category, indicating strong demand for budget-friendly models. This marks a significant jump compared to the pre-2023 period when monthly sales across the region ranged between 900-1,000 units.
For many residents, owning a car is no longer a luxury but a desire and necessity. “I had been dreaming of buying a car for many years. With easier loan options, I finally bought a four-wheeler in March this year,” said N. Prabhakar, a pepper trader from Nandyal.
With steady economic activity, expanding dealer networks and favorable financing conditions, the automobile industry in Rayalaseema looks poised for continued growth.
