The Federation of Automobile Dealers Associations (FADA) announced on Friday that vehicle retail sales during this year's 42-day festive period surged by 11.76 per cent, reaching 42.88 lakh units, compared to 38.37 lakh units in the same period last year. The growth was primarily driven by strong demand for two-wheelers, particularly in rural areas.
FADA suggests that this robust sales performance reflects a positive trend in the automobile market during the festive season.
The festive season saw significant growth across various segments of the automotive industry. Two-wheelers, three-wheelers, commercial vehicles (CVs), and passenger vehicles (PVs) recorded impressive increases of 13.79 per cent, 1.02 per cent, and 7.10 per cent, respectively. However, the tractor segment experienced a slight dip, with sales declining by 1.64 per cent, according to FADA.
Commenting on the 42-day festive period (from 1st day of Navratri to 15 days post Dhanteras) retails, FADA President, C S Vigneshwar said, "We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with vehicles registered during this period—a growth of 11.76 per cent over last year's 38.37 lakh units. Two-wheeler sales were particularly robust, registering a 13.79 per cent growth to reach 33.11 lakh units, largely driven by strong rural demand.”
He added, "As expected, Passenger vehicles bounced back after a lull, growing by 7.1 per cent to 6.03 lakh units, spurred by pent-up demand and unprecedented discounts available in the market. While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha.”
As the festive season draws to a close, FADA expects passenger vehicle stock levels to decrease further from the figures reported in its October retail data release. However, it emphasised that a complete picture of inventory levels will only be available by the end of the month.
“With 1.5 months remaining before the calendar year ends, FADA urges OEMs to focus on liquidating 2024 stock so that dealers can enter 2025 with ideal FADA-recommended 21 days of inventory,” Vigneshwar added.
