homeauto NewsIndian auto retailers sell over 90,300 vehicles each day in the festive season — SUVs most in demand
Indian auto retailers sell over 90,300 vehicles each day in the festive season — SUVs most in demand
FADA said that despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Deepawali, ending with a 10% growth rate. While SUVs were the highest demanded vehicles, inventory levels for passenger vehicles remain a significant concern.
Automobile retailers sold 37.93 lakh vehicles during the 42-day festive period in 2023, an increase of 19% from last year's 31.95 lakh, the Federation of Automobile Dealers Associations (FADA) said in a report on November 28.
This year’s festive season started on the first day of Navratri and ended 15 days after Dhanteras i.e. from October 15 to November 25, which is comparable to the period between September 26 and November 6 in 2022.
“Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Deepawali, ending with a 10% growth rate. While SUVs were the highest demanded vehicles, inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch thus keeping the inventory rate at near to all-time high levels,” the FADA report pointed out.
With record-breaking sales in several categories, two-wheeler, three-wheeler, commercial vehicles and passenger vehicles saw a jump of 21%, 41%, 8%, and 10%, respectively, while the tractor segment experienced a slight decline of 0.5%.
According to FADA, a key point to note is that rural areas particularly contributed to the surge in two-wheeler purchases.
Early this month, the retailers’ association released Navratri sales data which was the best in six years.
Though the first half of October saw an 8% year-on-year (YoY) decline in auto sales due to the Shraddh period, retail sales during Navratri soared 18% annually, surpassing the figures of Navratri 2017, FADA had said in its monthly update on November 6.
As November sales near close, FADA reiterated its caution on high inventory levels in the passenger vehicles (PVs) segment, which it earlier said demands urgent attention from OEMs.
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In the monthly October update, the retailers’ body had said that the near-term outlook for the auto sector was a blend of highs and lows.
Festivities along with harvest season (especially paddy) were expected to boost two-wheeler sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns. While CVs, too, eyed a strong November with festive and construction activities enhancing demand, alongside anticipated financial schemes, the PV segment was navigating through a tricky phase.
“Festive days might spike bookings, yet the shadow of year-end discounts looms over immediate sales,” FADA said, explaining why November data is key to watch.
(Edited by : Amrita)
First Published: Nov 28, 2023 10:08 AM IST
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