Festive auto retail sales up 11.76% driven by rebounding rural and pent-up demand: FADA
T
he automobile retail demand during this year's festive season witnessed a surge with sales growing at the rate of 11.76 per cent over last year's 38.37 lakh units, according to the Federation of Automobile Dealers Associations (FADA).
During the 42-day festive period from the start of Navratri to 15 days post-Dhanteras, a total of 42.88 lakh vehicles were registered.
The data reveals that two-wheeler sales were particularly robust, registering a 13.79 per cent growth to reach 33.11 lakh units, largely driven by strong rural demand.
During this year's festive season, passenger vehicles also rebounded significantly after a slow start earlier in the year. The segment saw a 7.10 per cent, with 6.03 lakh units sold, fuelled by pent-up demand and heavy discounts rolled out during the festive period.
The FADA has anticipated that passenger vehicle stock levels will reduce further from October retail figures.
The passenger vehicle (PV) segment also recorded a strong performance, with sales increasing by 32 per cent YoY.
"While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45L units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha," said C S Vigneshwar, FADA President.
FADA said that unseasonal heavy rains in South India, particularly in Bengaluru and Tamil Nadu, and Cyclone Dana in Odisha, slightly dampened their ambitious target of 45 lakh units.
Looking ahead, FADA anticipates passenger vehicle inventory levels to reduce further as dealers prepare for the final stretch of the calendar year.
"With 1.5 months remaining before the calendar year ends, FADA urges OEMs to focus on liquidating 2024 stock so that Dealers can enter 2025 with ideal FADA-recommended 21 days of inventory," Vigneshwar noted.
As per the data released by FADA earlier this month India's overall auto sales witnessed a strong 32 per cent year-on-year (YoY) growth in October, driven by surge in two-wheeler segment.
It highlighted that the Two-wheeler (2W) sales experienced an impressive 36 per cent YoY growth, benefiting from the convergence of major festivals like Navratri and Diwali, which significantly boosted consumer demand.
✔️ Festive auto retail sales up 11.76% driven by rebounding rural and pent-up demand: FADA
💕 Found this article helpful? Spread the word and support us!