Vehicle retail sales soar 19% to 37.93 lakh units during 42-day festive period: FADA

The inventory levels of PVs remain a big concern, as Original Equipment Manufacturers (OEMs) continue to dispatch more vehicles, keeping the inventory rate near all-time high levels

The Federation of Automobile Dealers Associations (FADA) reported on November 28 that vehicle retail sales during the 42-day festive period spiked 19 percent, reaching 37.93 lakh units.  The auto retail body claims that this surge in sales indicates a positive trend in the automobile market during the festive season.

“During the 42-day festive period of FY24, which started on the first day of Navratri (October 15) and ended 15 days after Dhanteras (November 25) we reached a new milestone with vehicle sales climbing to 37.93 lakh, a 19 percent increase from last year's 31.95 lakh," Manish Raj Singhania, FADA President, said in a statement.

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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 21 percent, 41 percent, 8 percent, and 10 percent, respectively. The tractor segment, however, saw a slight decline of 0.5 percent, according to the FADA.

Furthermore, record-breaking sales were reported in various categories, with rural areas playing a significant role in the surge in two-wheeler purchases.

Despite an initial underperformance during Navratri, especially in the PV sector, the situation improved by Diwali, culminating in a 10 percent growth rate. Sports Utility vehicles (SUVs) were in high demand among consumers. However, the inventory levels of PVs remain a big concern, as Original Equipment Manufacturers (OEMs) continue to dispatch more vehicles, keeping the inventory rate near all-time high levels," added Singhania.

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It was reported recently that owing to all-time high sales during August, September and October, passenger vehicle (PV) dispatches by carmakers to retailers during the festive period of 91 days were also the highest.

As per industry insiders, PV wholesale during the festive season, which commenced on August 17 (Onam) and culminated on November 15 (Bhai Dooj), were up by 41 percent to 11,38,000 units compared to last year. PV wholesales during the last 47 days were also up by 14.5 percent this year YOY, according to industry analysts.

The previous sales peak was during the festive period of 92 days in 2020 when 9,40,000 units of vehicles were sold by carmakers to retailers.

Tractors, which initially saw an 8.3 percent decline in sales during Navratri, made a significant recovery, concluding the festive period with only a 0.5 percent decrease. This turnaround underscores the resilient purchasing power in rural India, showcasing the sector's ability to bounce back during the festive season, FADA said in a release.