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A car factory in Pimpri, Maharastra. (Representative image) (Manoj Patil/Hindustan Times via Getty Images)
The Federation of Automobile Dealers Associations (FADA) announced on Wednesday that retail car sales in November reached a record high of 28.54 million units across all categories.
This surpassed the previous record of 25.69 million units set in March 2020, when the automobile industry was transitioning from BS-4 to BS-6 emission standards.
Sales of motorcycles and passenger vehicles (PV) hit a record high, with motorcycle (2W) sales reaching 2.247 million units, a record high of 20.7 million units in March 2020, and PV sales reaching 360,000 units. . This exceeded the October 2022 car sales of 357,000 units.
Two-wheeler sales increased by 21% year-on-year, compared to 1,856,108 units in November last year. Meanwhile, passenger vehicle sales increased by 17.19% year-on-year as compared to 3,07,550 units sold in the same month last year.
Sales of tricycles (3W) also increased by 23.31% year-on-year, with 99,890 units sold in the same month and 81,007 units sold in November 2022.
Tractor sales also fell by more than 21% year-on-year, with sales falling to 61,969 units in the previous month compared to 78,720 units in November 2022.
“November 2023 witnessed significant growth in the PV category, mainly due to Diwali and the launch of attractive new models. Supply chain improvements and new product launches have helped us effectively meet the festive demand and increase sales. However, the post-festival period witnessed a significant economic slowdown coupled with the significant challenge of slow inventory movement due to mismatch between supply and demand,” said the FADA Chairman. said Manish Raj Singhania.
This issue overshadows otherwise positive trends and highlights the need for strategic adjustments in inventory management, he added.
Singhania said the 2W category is poised to benefit from increased liquidity, especially in agricultural regions and the ongoing marriage season, with around 38 million marriages expected to drive car sales. Ta.
“However, challenges remain as harsh weather conditions that affect rabi cultivation can impact rural incomes and reduce sales. In contrast, the CV category is expected to grow in the post-election period. “Resumption of business activities and positive developments in key sectors such as cement and coal are expected to lead to recovery. Backlog of orders may also contribute to higher sales,” he added.
