Pointing to the drive for economic growth, India’s auto retail sales hit an all-time high in November, supported by the best-ever monthly performance across the passenger car and two-wheeler segments, dealer body FADA said on Wednesday. Overall retail sales last month were 2,854,242 units, an 18% increase from November 2022’s 2,409,535 units.
Retail sales of passenger vehicles (PV) increased to 3,60,431 units as against 3,07,550 units in the year-ago period, registering a growth of 17%. Similarly, the number of registered motorcycles increased by 21% to 2,247,366 units last month from 1,856,108 units in November last year.
“November 2023 was a historic month for the Indian auto retail industry, with 28.54 million vehicles sold, surpassing the previous high of 25.69 million vehicles in March 2020,” the Federation of Automobile Dealers Associations said. (FADA) Chairman Manish said. Raj Singhania added in a statement that the two-wheeler and passenger vehicle segments set new records last month.
The motorcycle division sold 22.47 million units, an increase of 177,000 units compared to the previous highest in March 2020, while the passenger car division also sold 360,000 units, compared to the previous highest in October 2020. Compared to this, the number increased by more than 4,000 units. 2022, Singhania said. He pointed out that PV sales last month were driven by Deepavali and the launch of attractive new models.
Singhania said that by improving its supply chain and launching new products, it effectively met the festival demand and recorded peak sales. However, the post-festive period witnessed a noticeable slowdown coupled with the significant challenge of slow movement of stocks due to demand-supply mismatch, which remains unresolved, he added.
“This issue is overshadowing otherwise positive trends and highlights the need for strategic adjustments in inventory management,” Singhania said. It added that this was supported by product launches and improved model availability. .
Retail sales of three-wheelers rose to 99,890 units last month, registering a 23% growth from November 2022. Meanwhile, tractor sales fell 21% to 61,969 units in November from 78,720 units in the same period last year.
Similarly, commercial vehicle retail sales last month were 84,586 units, down 2% year-on-year. “The seasonal downturn was exacerbated by unseasonal rains that damaged crops and affected transport demand, coupled with liquidity issues and delivery delays, further stressing the industry,” Singhania said. . FADA elaborated on its sales outlook and pointed out the following two points in the short term. The wheeler sector is poised to benefit from increased liquidity, especially in rural areas and during the ongoing marriage season, with around 38 million marriages expected to boost car sales, but rabi cultivation Challenges persist as severe weather conditions can impact rural incomes. It added that sales had slowed.
In contrast, the commercial vehicle (CV) category is expected to see some recovery due to the resumption of business activities post-election and positive developments in key sectors such as cement and coal, FADA said. The solar power sector shows potential for growth, and year-end sales and discounts, in addition to improved vehicle supply and new product launches, are expected to drive sales, the report said.
“Current PV inventories remain above 60 days, highlighting the need for original equipment manufacturers (OEMs) to strategically reduce fleet deployment of low-speed vehicles, especially in the entry-level category. Historically, the industry has recognized that holding inventory for more than 30 days begins to erode a dealer’s profitability, as the high interest costs of inventory financing from financial institutions increase the financial burden.” the group says.
FADA represents more than 15,000 auto dealers with more than 30,000 dealerships nationwide. FADA said it has collated registration data of 1,355 out of 1,442 Regional Transport Offices (RTOs) across India.