The Federation of Automobile Dealers Associations (FADA) has reported a surge in automobile retail demand during this year’s festive season, with sales growing by 11.76 per cent compared to last year. A total of 42.88 lakh vehicles were registered during the 42-day festive period, with two-wheeler sales experiencing a particularly strong growth of 13.79 per cent, reaching 33.11 lakh units. This growth was largely driven by strong rural demand. Passenger vehicles also saw a rebound in sales, with a 7.10 per cent increase and 6.03 lakh units sold, fueled by pent-up demand and heavy discounts offered during the festive period.
Despite the overall growth, unseasonal heavy rains in South India and Cyclone Dana in Odisha slightly impacted FADA’s ambitious target of 45 lakh units during the festive season. Looking ahead, FADA anticipates further reductions in passenger vehicle inventory levels as dealers prepare for the final stretch of the calendar year. The organization urges OEMs to focus on liquidating 2024 stock so that dealers can enter 2025 with the recommended 21 days of inventory.
India’s overall auto sales witnessed a strong 32 per cent year-on-year growth in October, driven by a surge in the two-wheeler segment, which experienced an impressive 36 per cent YoY growth. The convergence of major festivals like Navratri and Diwali significantly boosted consumer demand in the two-wheeler segment. FADA President C S Vigneshwar expressed optimism about the strong performance of the passenger vehicle segment and acknowledged the challenges posed by the adverse weather conditions in certain regions of the country during the festive season.
The data released by FADA highlights the overall positive trend in auto sales during this year’s festive season, with various segments showing growth compared to the previous year. Passenger vehicles, two-wheelers, and overall auto sales experienced significant increases, reflecting the impact of festive season demand and consumer sentiment. FADA expects that passenger vehicle stock levels will continue to decrease as dealers work towards managing their inventory levels in preparation for the new year.
In conclusion, the surge in automobile retail demand during this year’s festive season has been a positive development for the industry, with strong growth recorded across various segments. While challenges such as adverse weather conditions in certain regions impacted sales targets, the overall performance of the auto sector during the festive period has been encouraging. FADA’s continued efforts to manage inventory levels and optimize stock for the upcoming year demonstrate a proactive approach towards sustaining growth in the industry.
