Retail vehicle sales across categories in India rose by 11.21% to 32,08,719 units in November, compared to 28,85,317 units in the same month last year, driven by two-wheeler demand, according to the Federation of Automobile Dealers Associations (FADA).
Two-wheeler sales increased by 15.8% to 26,15,953 units from 22,58,970 units in November 2023, buoyed by the festive spillover. However, passenger vehicle (PV) sales dropped 13.72% to 3,21,943 units from 3,73,140 units in the year-ago period, hindered by weak market sentiment, limited product variety, and fewer new launches. Commercial vehicle (CV) sales declined by 6.08% to 81,967 units, while three-wheeler sales grew by 4.23% to 1,08,337 units.
FADA President, Mr. Chittur Selvakumar Vigneshwar, noted subdued marriage-related sales and the late occurrence of Deepawali as factors affecting November’s performance. Rural demand supported two-wheelers. PV inventory levels remain high at 65-68 days, prompting FADA’s call for original equipment manufacturers (OEMs) to rationalise stocks ahead of the new year.
While December’s outlook appears stable with pockets of potential growth, challenges such as weak consumer sentiment and deferred purchases for new models persist. Year-end discounts and improved product availability are expected to provide some relief.
FADA remains cautiously optimistic, citing a favourable macroeconomic environment, including a likely bumper Kharif harvest, which could bolster consumer confidence in the coming months.
