The festive period, as defined by FADA, spanned from Navratri to 15 days after Dhanteras, accounting for the time lag in vehicle registration processes. This 42-day period serves as a crucial sales window for the Indian automobile industry. The Federation of Automobile Dealers Associations (FADA) reported a 12% year-on-year increase in automobile retail sales for the 42-day festive period, reaching 42,88,248 units. This growth was driven by pent-up demand, attractive discounts, and strong rural demand. However, unseasonal rains in South India and Cyclone Dana in Odisha slightly impacted the overall sales figures.
FADA President, CS Vigneshwar, stated that the industry nearly achieved its projected target of 45 lakh units. He highlighted the impact of external factors on sales, particularly in specific regions.
"While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha."
Passenger vehicles
The passenger vehicle segment witnessed a 7% increase, reaching 6,03,009 units sold during the festive season, compared to 5,63,059 units in the previous year. This rebound was fueled by pent-up demand and substantial discounts offered by manufacturers.
Two-wheelers
Two-wheeler sales experienced a 14% rise, reaching 33,11,325 units, compared to 29,10,141 units in the same period last year. Robust rural demand played a significant role in driving this growth.
Commercial vehicles
Commercial vehicle retail sales saw a marginal 1% increase, reaching 1,28,738 units. Three-wheeler sales demonstrated a positive trend with a 7% growth, reaching 1,59,960 units. However, the tractor segment faced a 2% decline, recording 85,216 units sold compared to 86,640 units in the previous year.
Looking ahead, FADA anticipates improved performance in the commercial vehicle sector, driven by increased government spending on infrastructure projects. The tractor segment is also expected to recover, supported by favorable monsoon conditions and the government's decision to raise the minimum support price (MSP) for crops.
"Looking ahead, the auto industry is yet to fully benefit from a government push in infrastructure spending, which we expect will bolster commercial vehicle sales," Vigneshwar noted.
"Additionally, tractors should perform better, supported by good rainfall and the government's increase in the minimum support price (MSP) of crops, putting more money into farmers' hands," he added.
The festive period, as defined by FADA, spanned from Navratri to 15 days after Dhanteras, accounting for the time lag in vehicle registration processes. This 42-day period serves as a crucial sales window for the Indian automobile industry.
"We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with 42.88 lakh vehicles registered during this period's growth of 11.76% over the last year's 38.37 lakh units," Vigneshwar said.
FADA's report is based on data compiled from 1,368 out of 1,430 Regional Transport Offices (RTOs) across India, providing a comprehensive overview of vehicle registration trends during the festive season. The organisation encourages original equipment manufacturers (OEMs) to prioritise clearing their 2024 inventory to ensure dealers begin the new year with optimal stock levels.
