2024/11/13 11:14 am
October 2024 saw a boost in auto retail sales, surging 32% YoY in October and 64% MoM. This can be attributed to the merging two festivals, Navaratri and Diwali, in the same month. All categories, two-wheelers, three-wheelers, passenger vehicles, tractor, and commercial vehicle segments showed positive growth with 2Ws up by 36%, 3W up by 11%, PV up by 32%, Trac up by 3% and CV up by 6%. The Federation of Automobile Dealers Associations (FADA) reported the boost in auto sales in a statement on 7th November.
Dealers reported aggressive sales pick-ups because of the attractive schemes and new model introductions. Strong market interest and increased vehicle availability for SUVs and new products stimulated the demand. PV OEMs (Original Equipment Manufacturers) continue to supply dealers, resulting in huge inventory levels. This may still result in an end-of-season sale to clear the inventory.
Overall retail sales increased by 32.14% from 21,43,929 to 28,32,944. “The festive season, featuring both Diwali and Dussehra, also stimulated demand, along with some recovery from September's slowdown due to rains. However, dealers faced challenges such as slow demand, sluggish construction activities, financial issues among customers and increased vehicle prices leading to higher EMIs” said Mr C S Vigneshwar President of FADA.
The automobile industry is optimistic about continued retail performance throughout the end of this calendar year owing to the estimated 4.8 million weddings scheduled nationwide in November and December. FADA anticipates an increase in sales of 2W and PV segments.
However, inventories in the PV segment remain high and OEMs are urged to rationalize supply to avoid excess stock. Also, CV dealers remain cautious about slow construction activities, financial constraints and expected post-festivity demand decline. Overall, the dealers, even though they feel positive following a festive boost, are mindful of challenges and exercising caution while navigating the rest of the year.