Auto retail sales soar to record high in November aided by highest passenger vehicle, two-wheeler offtakes
The retail sales of passenger vehicles (PV) demonstrated robust growth, reaching 360,431 units, a 17% increase from the corresponding period last year when sales were at 307,550 units.
In a significant development, automotive retail sales in India reached an unprecedented peak in November, marking a notable surge in both the passenger vehicle and two-wheeler segments, according to the Federation of Automobile Dealers Associations (FADA). The total retail sales for the month soared to 2,854,242 units, reflecting an impressive 18% increase compared to November 2022, when sales stood at 2,409,535 units.
The retail sales of passenger vehicles (PV) demonstrated robust growth, reaching 360,431 units, a 17% increase from the corresponding period last year when sales were at 307,550 units. Likewise, two-wheeler registrations experienced a remarkable 21% rise, climbing to 2,247,366 units from 1,856,108 units in November 2022.
President of FADA, Mr. Manish Raj Singhania, described November 2023 as a historic month for the Indian Auto Retail Industry. He highlighted the sale of 28.54 lakh vehicles during the month, surpassing the previous high in March 2020 when 25.69 lakh vehicles were sold during the BS-4 to BS-6 transition. Both the two-wheeler and passenger vehicle categories set new records, with 2W sales at 22.47 lakh vehicles and PV sales at 3.6 lakh vehicles, exceeding the previous highs of March 2020 and October 2022, respectively.
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Singhania acknowledged challenges in inventory management, emphasizing the need for strategic adjustments. He attributed the growth in two-wheeler sales to increased demand in rural areas, new product launches, and improved model supply.
Other sectors also experienced notable changes, with three-wheeler retail sales rising by 23% to 99,890 units, while tractor sales saw a decline of 21% to 61,969 units. Commercial vehicle retail sales dipped by 2% year-on-year to 84,586 units in November, impacted by seasonal slumps, unseasonal rains affecting crops, liquidity issues, and delayed deliveries.
Looking ahead, FADA anticipates a positive outlook for the two-wheeler category in the near term, fueled by liquidity boosts in rural areas and the ongoing marriage season. However, challenges may arise due to severe weather conditions affecting rural incomes. In contrast, the commercial vehicle category is expected to recover, driven by renewed business activities post-elections and positive trends in key sectors.
The passenger vehicle sector holds potential for growth with year-end offers, discounts, improved vehicle supply, and new product launches. FADA emphasized the need for Original Equipment Manufacturers (OEMs) to strategically manage inventory, particularly in the entry-level category, to prevent erosion of dealer profitability.
FADA, representing over 15,000 automobile dealerships with more than 30,000 outlets nationwide, compiled the registration data from 1,355 out of 1,442 regional transport offices (RTOs) across India.
(With input from agencies)