New Delhi [India], December 6 (ANI): The Federation of Automobile Dealers Associations (FADA) has unveiled the Vehicle Retail Data for November 2023, marking a historic achievement for the Indian Auto Retail Industry.
According to a press release, the month witnessed the sale of 28.54 lakh vehicles, surpassing the previous high of March 2020, which sold 25.69 lakh vehicles during the industry’s transition from BS-4 to BS-6 emission norms.
Categories like 2-wheelers (2W) and passenger vehicles (PV) set new all-time highs. Two-wheelers sold 22.47 lakh vehicles, exceeding March 2020’s 20.7 lakh vehicles, while PV reached 3.6 lakh vehicles, surpassing October 2022 sales of 3.57 lakh vehicles.
The overall retail sales for November 2023 grew by 18 per cent YoY.
Two-wheelers, three-wheelers (3W), and PV categories witnessed growth rates of 21 per cent, 23 per cent, and 17 per cent, respectively, on a YoY basis. However, tractor (Trac) and commercial vehicle (CV) categories experienced a drop of -21 per cent and -2 per cent.
The 2W category demonstrated remarkable month-on-month growth, rising by 49 per cent, supported by a 2 per cent growth in PV, leading the entire industry to a 35 per cent MoM growth.
The surge is attributed to the festive season, especially during Deepawali, and strong rural sentiments boosted by thriving agricultural income.
The ongoing marriage season between November 23 and December 15, with approximately 38 lakh marriages expected, is contributing to high vehicle sales, particularly in rural India.
FADA acknowledged a reduction in PV inventory but highlighted the need for PV original equipment manufacturers (OEMs) to cut back on dispatches of slow-moving vehicles in the entry-level category.
FADA urged PV OEMs to announce attractive schemes to support year-end buying and reduce inventory at dealerships.
Severe rains and hailstorms in west and south India are expected to impact rabi cultivation, potentially affecting crop output and leading to increased inflation. This could make daily essentials more expensive, impacting vehicle sales in the near term.
The near-term outlook suggests a liquidity boost benefiting the 2W category, particularly in agricultural regions and the ongoing marriage season.
However, challenges persist with weather conditions affecting rural incomes. The CV category is expected to see recovery post-elections and positive movements in key sectors.
The PV sector shows potential for growth with year-end offers and discounts expected to stimulate sales.
While opportunities exist, challenges include consumer preferences, high PV inventory, and external economic factors.
FADA emphasized the need for strategic adjustments in inventory management and reduction in dispatches of slow-moving vehicles to navigate through the complexities of the auto retail landscape. (ANI)