Ani |
Has been updated: December 6, 2023 10:11 IST
New Delhi [India]December 6 (ANI): Federation of Automobile Dealers Associations (FADA) has released the Auto Retail Data for November 2023, marking a historic achievement for the Indian auto retail industry.
According to a press release, vehicle sales in the month stood at 28.54 million units, higher than the 25.69 million units sold in March 2020, when the industry was transitioning from BS-4 to BS-6 emission standards.
Categories such as motorcycles (2W) and passenger vehicles (PV) hit record highs. Motorcycle sales were 22.47 million units, exceeding 2.07 million units in March 2020, and PV reached 360,000 units, exceeding 3.57 million units in October 2022.
Overall retail sales increased 18% year over year in November 2023.
Two-wheeler, three-wheeler (3W), and PV categories registered growth rates of 21%, 23%, and 17%, respectively, on a year-on-year basis. However, the tractor (Trac) and commercial vehicle (CV) categories saw declines of -21% and -2%.
The 2W category showed impressive month-over-month growth of 49%, supported by a 2% increase in PV, leading the industry as a whole to 35% month-over-month growth.
This surge is attributed to strong rural sentiment driven by the festive season, especially during Deepavali, and thriving agricultural income.
The wedding season, which runs from November 23 to December 15, is expected to see around 38 million marriages, contributing to an increase in car sales, especially in rural India.
FADA acknowledged that solar PV inventories are decreasing, but stressed the need for solar PV original equipment manufacturers (OEMs) to reduce shipping of slow vehicles in the entry-level category did.
FADA called on solar OEMs to announce attractive schemes to support year-end purchases and reduce dealer inventories.
Heavy rains and hailstorms in western and southern India are expected to affect rabi cultivation, impacting crop production and potentially leading to increased inflation. This could lead to soaring prices for daily necessities, which could affect car sales in the short term.
The near-term outlook suggests that improved liquidity will benefit the 2W category, especially in agricultural regions and the ongoing marriage season.
However, the challenge of weather conditions affecting rural incomes remains. The resume category is expected to see a post-election recovery and positive developments in key sectors.
The solar power sector shows potential for growth and is expected to be boosted by year-end sales and discounts.
Opportunities exist, but challenges include consumer preferences, high PV inventories, and external economic factors.
FADA emphasized the need for strategic adjustments in inventory management and reduced dispatch of slow vehicles to overcome the complexities of the auto retail industry. (Ani)