FADA Reveals Robust Growth in Auto Retail Sales During Festive Season: 19% YoY Increase

The Federation of Automobile Dealers Associations (FADA) has unveiled the retail sales data for the 42-day festive period, spanning from the first day of Navratri to 15 days after Dhanteras.

Contrary to industry concerns, the positive momentum persisted, with overall auto retail sales witnessing a substantial uptick of 19 percent year-on-year (YoY), totaling 37.93 lakh vehicles registered. This comprised 28.93 lakh two-wheelers, marking a 21 percent YoY increase, 1.42 lakh three-wheelers, up by an impressive 41 percent YoY, 1.23 lakh commercial vehicles, showing an 8 percent YoY rise, 5.47 lakh passenger vehicles, reflecting a 10 percent YoY surge, and 86,572 tractors.

Manish Raj Singhania, President of FADA, highlighted the noteworthy growth across various segments, including two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles, witnessing respective YoY increases of 21%, 41%, 8%, and 10%. Singhania pointed out that the tractor segment experienced a marginal decline of 0.5%. He noted record-breaking sales, particularly in rural areas contributing significantly to the surge in two-wheeler purchases.

Singhania acknowledged a slow start during Navratri, especially in the passenger vehicle sector, but a notable improvement was observed by Diwali, culminating in a 10% growth rate. Despite the popularity of SUVs, concerns linger over inventory levels for passenger vehicles. Original Equipment Manufacturers (OEMs) are continually pushing dispatches, maintaining inventory rates close to all-time high levels.

Here is a breakdown of the category-wise performance during the festive period:

• Two-wheelers: 28,93,107 units (20.71% YoY increase)
• Three-wheelers: 1,42,875 units (41.39% YoY increase)
• Commercial vehicles: 1,23,784 units (8.11% YoY increase)
• Passenger vehicles: 5,47,246 units (10.32% YoY increase)
• Tractors: 86,572 units (-0.44% YoY decrease)

The total festive period sales amounted to 37,93,584 units, reflecting an 18.73% YoY increase over the same period last year (Oct 15 – Nov 25 compared to Sep 26 – Nov 6).

Singhania also noted the resilience in the tractor segment, which, after experiencing an 8.3% sales decline during Navratri, made a remarkable recovery to end the festive period with only a 0.5% decrease. This turnaround underscores the robust purchasing power in rural India, he concluded.