The festive season has always brought a boost to business, and the automobile retail industry was no exception, witnessing a 32% surge in October. Compared to last year, sales have shown significant growth, especially for two-wheelers (2W) and passenger vehicles (PVs), with demand surpassing expectations. This was claimed by the dealers’ association on Wednesday.
According to data from the Federation of Automobile Dealers Associations (FADA), October recorded total retail sales of 2.83 million units, making it the second-highest number after 2.85 million in November 2023. Both two-wheelers (2W) and passenger vehicles (PV) saw a 32% increase in sales. The breakdown of the data shows three-wheeler sales up by 11%, commercial vehicles up by 6%, and tractors up by 3%. Overall retail sales increased 64% compared to September.
“October witnessed the convergence of two major festivals, Navratri and Diwali, both occurring in the same month. Additionally, the government of India’s announcement of an increase in the minimum support price (MSP) for rabi crops further boosted market sentiment. We are expecting the same trend this month (November),” said C S Vigneshwar, president of FADA. Some 5 million weddings are scheduled in November and December.
Companies Posted About Their Sales Percentage-
Different companies reported improves PV an 2W sales in October-
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- Maruti Suzuki- 35 %
- Hyundai Motor- 30%
- Tata Motors- 31%
- Mahindra and Mahindra- 56%
- Passenger Vehicle sales- 483,159 units.
These vehicle units were sold last month in October, when inventory levels declined to 75-80 days due to stock correction by companies Whereas the Inventory levels in September touched record high of 80-85 days. The improvement may still lead the season of discounts to continue until the end of 2024.
Two wheeler sales in October-
- Hero Motocorp- 38%
- Honda Motorcycle and Scooter India- 37%
- TVS Motor- 39%
- Bajaj Auto- 28%
The overall sales in the segment was at 20.65 million units.
“Dealers reported that attractive festive schemes, discounts and new model launches significantly stimulated customer interest. Enhanced stock availability and better vehicle supplies from manufacturers enabled dealers to meet the increased demand. Positive rural sentiments, aided by favourable monsoons and crop expectations, also contributed to the strong performance,” said Vigneshwar.
“Overall, while the industry is optimistic about near-term growth driven by the wedding season and favourable market conditions, dealers are mindful of potential challenges that could affect sales momentum as the year concludes,” Vigneshwar added.
