As per FADA, 28.54 lakh vehicles were sold in November, creating a new record, surpassing the record of March 2020, when 25.69 lakh vehicles were sold due to the industry’s transition from BS-4 to BS-6 emission norms.
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Auto sales in the month of November recorded an 18 per cent growth, with two-wheelers, three-wheelers and passenger vehicles all witnessing substantial growth, showed Federation of Automobile Dealers Associations (FADA) data. Maruti Suzuki, Hyundai Motor and Tata Motors are the top sellers when it comes to passenger vehicles, while Tata Motors and Mahindra are the top commercial vehicle sellers.
As per FADA, 28.54 lakh vehicles were sold in November, creating a new record, surpassing the record of March 2020, when 25.69 lakh vehicles were sold due to the industry’s transition from BS-4 to BS-6 emission norms.
Two-wheeler and passenger vehicle sales set new records as it sold an all-time high number of units. In November, 22.47 lakh two-wheeler vehicles were sold, while 3.6 lakh passenger vehicles were sold. Sales in the two-wheeler vehicles category soared amid the festive season. It saw a 49 per cent on-month growth, while passenger vehicles grew 2 per cent, thus leading to an industry-wide growth of 35 per cent on-month.
FADA President, Manish Raj Singhania, said that Diwali festivities and strong rural sentiments led to a growth in sales of the two-wheeler category. “New product launches and better model supply further fuelled the market’s growth, while electric vehicle sales demonstrated an encouraging upward trajectory,” said Singhania.
Passenger vehicle sales were fuelled by Diwali festivities and the launch of new models, said Singhania. “The improved supply chains, coupled with new launches, effectively catered to the festive demand, marking the peak point in sales.
However, the period following the festivities saw a noticeable slowdown, coupled with a critical challenge of slow-moving inventory due to a mismatch in demand and supply which is still not resolved,” said the FADA President.
Hero Motocorp with 8,02,234 and Honda Motorcycle and Scooter with 5,12,865 units sold were the top-most sellers of two-wheelers. Maruti Suzuki with 1,49,929, Tata Motors with 53,539 units, and Hyundai Motor with 49,716 sold were the top passenger vehicle sellers.
While overall sales grew 18 per cent on-year, two-wheeler, three-wheeler, and passenger vehicle categories grew by 21 per cent, 23 per cent, and 17 per cent respectively on a YoY basis. Tractors and commercial vehicles, on the other hand, saw a drop of 21 per cent and 2 per cent respectively.
November was a challenging month for the commercial vehicle category due to poor market sentiments. “Seasonal slumps, exacerbated by unseasonal rains damaging crops and impacting transport demand, coupled with liquidity issues and delayed deliveries, further strained the industry. States going into elections also added to the woes, overshadowing the brief uplift from festive sales and the slight increase in tourism that helped in sales of buses,” said Singhania.
Tata Motors with 29,700 and Mahindra and Mahindra with 23,429 sales were the top commercial vehicle sellers.
The ongoing wedding season, with around 38 lakh marriages, is expected to drive vehicle sales of two-wheelers. However, challenges such as severe weather conditions impacting rabi cultivation, could potentially dampen sales. Meanwhile, the commercial vehicle category is expected to see a recovery, driven by renewed business activities after the elections.
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“The PV sector shows potential for growth with year-end offers and discounts expected to stimulate sales, along with an improved vehicle supply and new product launches. However, the market faces hurdles in terms of a preference for 2024 manufactured vehicles and a notable slowdown in demand and bookings post festivities,” said Singhania, adding that the PV inventory is still above 60 days.
