MUMBAI: Retail passenger vehicle (PV) sales in November 2024 fell by 33.37% compared to October 2024 and by 13.72% year-on-year, totalling 321,943 units. The decline in demand followed the festive season, with October 2024 sales reaching 483,159 units, according to data from the Federation of Automobile Dealers Associations (FADA).
“The PV segment faced notable headwinds, with sales declining 33.37% MoM and 13.72% YoY. Dealers cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October. Although rural interest was present, it failed to significantly improve sentiment,” said FADA President C S Vigneshwar.
He noted that inventory levels have decreased by approximately 10 days but remain high at around 65-68 days. FADA has urged OEMs to further rationalise inventory to ensure the industry enters the new year on a healthier footing, thereby minimizing the need for additional discounts.
Vigneshwar stated that November was initially expected to build on its prior momentum, particularly due to the marriage season. However, dealer feedback suggests that this segment underperformed overall expectations.
“Although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued. The late occurrence of Deepawali at the end of October also caused a spill-over of festive registrations into November, affecting the month’s sales trajectory,” added Vigneshwar.
Total auto retail sales in November 2024 grew 13.26% month-on-month and 11.21% year-on-year to 32,08,719. Most of the growth is attributed to two-wheeler sales which grew by 26.67% month-on-month to 26,15,953 units. Commercial vehicle sales fell by 15.85% sequentially to 81,967 units while tractor sales grew 25% to 80,519 units. Three-wheeler sales fell by about 12% to 108,337 units.
FADA said that in the PV segment, heavy discounting and improved product availability are expected to help offset weak consumer sentiment and a general year-end lull.
“While some customers are deferring purchases for new-year models, overall interest could pick up due to aggressive offers and end-of-year promotions. This sets a tone of cautious optimism, with a moderate chance of improved sales compared to November,” it added.