Vehicle retail sales rise 12% to 43 lakh units during 42-day festive period: FADA

Vehicle retail sales rise 12% to 42.88 lakh units during 42-day festive period: FADA

The Federation of Automobile Dealers Associations (FADA) on November 15 said that vehicle retail sales during the 42-day festive period this year jumped 11.76 percent, reaching 43 lakh units as against 38.37 lakh units last year. The growth was led by two-wheeler sales on the back of strong rural demand. The auto retail body claims that this surge in sales indicates a positive trend in the automobile market during the festive season.

Commenting on 42-day festive period (from 1st day of Navratri to 15 days post Dhanteras) retails, FADA President, C.S. Vigneshwar said, "We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with vehicles registered during this period largely driven by strong rural demand."

During the festive season, there was notable growth in various segments of the automotive industry. Two-wheelers, three-wheelers, commercial Vehicles (CVs), and passenger vehicles (PVs) saw significant increases of 13.79 percent to 33. 11 lakh units, 1.02 percent to 1.28 lakh units, and 7.10 percent to 6.03 lakh units, respectively. The tractor segment, however, saw a slight decline of 1.64 percent to 85,216 units, according to FADA.

He went on to add, "As expected, passenger vehicles bounced back after a lull, growing by 7.1 percent to 6.03 lakh units, spurred by pent-up demand and unprecedented discounts available in the market. While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha.”

As the festivities conclude, FADA anticipates passenger vehicle stock levels will reduce further from what we reported in our October retail data press release. However, it maintained that the entire picture on inventory will emerge by month-end.

“With 1.5 months remaining before the calendar year ends, FADA urges OEMs to focus on liquidating 2024 stock so that dealers can enter 2025 with ideal FADA-recommended 21 days of inventory, Vigneshwar added.

Looking ahead, the auto industry is yet to fully benefit from a government push in infrastructure spending, which will bolster commercial vehicle sales, as per FADA. “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,” noted Vigneshwar.