New Delhi
Automobile retail sales in India grew by 12% year-on-year during the 42-day festive period this year, reaching a total of 42.88 lakh units, according to data released on Friday. This marks a notable increase from last year’s 38.37 lakh units during the same period.
FADA president CS Vigneshwar attributed the growth to strong demand starting from Navratri, driven by pent-up demand, attractive discounts, and an overall positive market sentiment. “We nearly hit our target with 42.88 lakh vehicles registered, reflecting a growth of 11.76% compared to last year’s 38.37 lakh units,” he said.
Passenger vehicle sales increased by 7% to 6.03 lakh units, up from 5.63 lakh units last year. The segment saw a strong recovery, aided by higher discounts and improved consumer confidence. However, sales could have been even higher if not for the unseasonal heavy rains in South India, particularly in Bengaluru and Tamil Nadu, and Cyclone Dana in Odisha.
Two-wheeler sales led the growth, rising by 14% to 33.11 lakh units, spurred by robust rural demand. Commercial vehicle sales saw a modest increase of 1%, reaching 1.28 lakh units, while three-wheeler sales grew by 7% to 1.59 lakh units.
Tractor sales, however, showed a slight decline of 2%, totaling 85,216 units. Looking ahead, FADA expects commercial vehicle sales to further benefit from infrastructure spending, and tractor sales to improve with better rainfall and higher minimum support prices (MSP) for crops.
Vigneshwar also urged Original Equipment Manufacturers (OEMs) to focus on clearing 2024 stock before the year ends to ensure dealerships enter 2025 with optimal inventory levels.
