Festive season India: Festive season demand fuels automobile retail sales to record high: FADA

Fueled by strong demand, automotive retail sales in India reached an all-time high during this festive season, according to FADA, with all segments experiencing year-on-year growth except for tractors. Overall, automobile sales surged by 19 per cent, reaching 37,93,584 units in the 42-day festive period, compared to 31,95,213 units in the previous year.

Passenger vehicle retail sales in the 42-day festive period increased by 10%. Around 5,47,246 units were sold, up from 4,96,047 units last year. Commercial vehicle sales rose 8 per cent YoY to 1,23,784 units in the 42-day festive season window, it said.

“Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Diwali, ending with a 10 per cent growth rate,” Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said.

Sports utility vehicles (SUVs) were the most sought-after segment during the festive period, Singhania said.

He pointed out that the inventory levels for passenger vehicles remain a notable worry, with OEMs persistently increasing dispatches, thereby maintaining inventory rates at nearly all-time high levels.

Likewise, registrations for two-wheelers increased by 21 per cent year-on-year, reaching 28,93,107 units this year, up from 23,96,665 units in 2022. “Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases,” he said. Registrations for three-wheelers saw a 41 per cent surge to 1,42,875 units in the reviewed period, up from 1,01,052 units in the corresponding period last year. On the other hand, tractor sales experienced a slight decline, decreasing to 86,572 units from 86,951 units during the festive period last year.

“Tractors, which saw 8.3 per cent decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5 per cent decline,” Singhania said.

Festive period this year commenced on October 15 and ended on November 25. Last year, it stretched between September 26 and November 6. FADA said it collated vehicle registration data from 1,355 out of 1,442 RTOs.

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