India bought 11.76% more vehicles year-on-year in the 42-day festive period as the automobile sector recorded sales of 42.88 lakh vehicles during this period compared to last year’s 38.37 lakh units, data released by the Federation of Automobile Dealers Associations (FADA) showed on November 15.
Reflecting on the retail sales of vehicles from the first day of Navratri to 15 days post Dhanteras, FADA President, C S Vigneshwar said, “the automobile retail sector has achieved a new milestone, surpassing last year’s festive records. We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target.”
According to the auto dealer body’s statement, two-wheeler sales were robust, registering a 13.79% growth to reach 33.11 lakh units, largely driven by strong rural demand. Passenger vehicles or cars bounced back after a lull, growing by 7.10% to 6.03 lakh units, on the back of pent-up demand and unprecedented discounts available in the market.
The retail sale of three-wheelers rose 6.8% YoY during the festive period to 1.59 lakh whereas commercial vehicle sales were nearly flat as the segment recorded 1.02% more sales during the 42-day period compared to the last year.
Tractors, meanwhile, saw a 1.64% YoY decline in sales as the dealers sold 85,216 units compared to 86,640 during last year’s festive period.
While the overall sales have risen, FADA also noted that dealers would have fully met or even exceeded targets of 45 lakh units during the festive period if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha.
Going forward, FADA anticipates passenger vehicle stock levels to reduce further from what was reported in October. However, the auto dealer’s body continues to advise caution as the complete picture on inventory will emerge by month-end.
With 1.5 months remaining before the calendar year ends, FADA has reiterated its request to urges OEMs to focus on liquidating 2024 stock so that dealers can enter 2025 with ideal FADA-recommended 21 days of inventory.
“Looking ahead, the auto industry is yet to fully benefit from a government push in infrastructure spending, which we expect will bolster commercial vehicle sales. Additionally, tractors should perform better, supported by good rainfall and the government’s increase in the Minimum Support Price (MSP) of crops, putting more money into farmers’ hands,” the statement added.