Domestic retail automobile sales in October this year decreased by 7.73% from the previous year to 2,117,596 units, but this was mainly due to the recession period affecting new purchases and a decline in the penetration rate of motorcycles. announced the federation. The Automobile Dealers Association (FADA) made the announcement on Monday.
FADA announced in a statement that retail sales of automobiles in the domestic market in October 2022 were 2,295,099 units.
According to FADA’s latest data, retail two-wheeler sales were 15,07,756 units last month, down 12.60 per cent as against 1,725,043 units in the same period last year.
Similarly, passenger vehicle (PV) retail units also declined by 1.35% to 3,53,990 units last month as compared to 3,58,884 units in October 2022.
Meanwhile, three-wheeler sales stood at 1,04,711 units, an increase of 45.63% compared to 71,903 units in the same month last year.
Retail sales of tractors also increased by 6.15% to 62,440 units compared to 58,823 units in October 2022.
Retail sales of commercial vehicles in October this year were 88,699 units, an increase of 10.26% compared to 80,446 units in the same month last year.
FADA Chairman Manish Raj Singhania said, “This month started under the shadow of an inauspicious shradd period and continued till October 14. Therefore, year-on-year comparisons do not accurately reflect the actual growth trajectory of the Indian auto retail industry. It may not be reflected in the current situation.”
According to FADA data, sales were down 8% year-on-year in the first half of October, which included the shradd period, but grew 13% month-on-month, “demonstrating the resilience of market demand.”
FADA said all automotive categories are gaining momentum as the festivities continue.
“Navratri 2023 marked a milestone with retail sales increasing by 18% year-on-year, surpassing the 2017 Navratri numbers. All categories showed commendable growth, except for tractors, which declined by 8%.” said Singhania. .
Two-wheelers, three-wheelers, commercial vehicles and passenger vehicles increased by 22 per cent, 43 per cent, 9 per cent and 7 per cent respectively during Navratri, he added.
Singhania further said that the two-wheeler category witnessed some positive trends during Navratri and throughout October, supported by festive cheer and rising rural demand.
He said the passenger vehicle sector had navigated through a complex situation characterized by both enthusiasm and caution, adding: “During Navratri, despite regional variations, the industry witnessed a surge in bookings.” , it added, was boosted by the introduction and increased availability of new models, especially SUVs. A number of attractive consumer offers.
“However, due to local elections and market saturation, the festive mood was not reflected uniformly in sales across all regions,” he added.
The three-wheeler segment continues to see an increase in demand during Navratri, mainly due to competitive financing options and a significant rise in interest in e-rickshaws, showing a healthy move towards electrification, Singhania said. .
Throughout October, Singhania said, “Expectations for Diwali in November and the launch of new models led to steady demand. The period overall saw a stronger product lineup, unlike last year when inventory conditions were tight. The solar power market has shown resilience, supported by Main issue. “ On the outlook, FADA said, “The near-term outlook for the auto sector is a mix of highs and lows towards the end of the year.” Despite supply concerns, optimism is boosted by new schemes and a push towards electrification, and festivals associated with the harvest season, especially the paddy harvest, are expected to boost two-wheeler sales. he added.
FADA said the commercial vehicle segment is expected to perform well in November due to increased demand due to expected fiscal plans, as well as festivals and construction activities.
“However, the solar power sector is going through a difficult phase. While there may be a surge in bookings during festival days, the shadow of year-end discounts looms over immediate sales,” FADA said.
The report said urgent action was needed from OEMs as PV inventory levels have reached critical levels of 63-66 days, adding, “Without significant intervention, Diwali sales are likely to decline. If we don’t reach a commensurate level, unsold inventory will pile up, causing significant pain for dealers.”
“Immediate and decisive action is essential to counter the risk of fiscal stress towards the end of the year,” FADA said, adding that it could have industry-wide implications.
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Published: Monday, November 6, 2023, 11:01 AM IST