NEW DELHI: On the back of high demand during festive season, monthly retail auto sales hit an all-time high in November 2023 with 28.54 lakh vehicles finding buyers, surpassing the previous high of 25.69 lakh units in March 2020, as per data issued by Federation of Automobile Dealers Associations (Fada).
While passenger vehicle (PV) sales rose 17.19% year-on-year to cross the 3.6 lakh mark in November, overtaking sales of 3.57 lakh cars achieved in October 2022, two-wheeler retail sales grew by 21% to hit a fresh peak of 22.47 lakh units.
“For the 2W category, the month saw a boost in auto retail, making it clock all-time high retails, buoyed by the festive excitement of Deepawali and enhanced by strong rural sentiments, thanks to thriving agricultural income. New product launches and better model supply fuelled the growth, electric vehicle sales demonstrated an encouraging upward trajectory,” said FADA president Manish Raj Singhania.
On PV sales, he said demand was fuelled by Deepawali and the launch of new and appealing models. The improved supply chains, coupled with new launches, catered to the festive demand, marking the peak point in sales, he added. Fada expects 2W sales momentum to continue but the near-term outlook doesn’t look promising for the PV market. “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.
This issue casts a shadow over the otherwise positive trends, highlighting the need for strategic adjustments in inventory management,” said Singhania. The 2W category, as per Fada, is likely to benefit in the near-term from a liquidity boost, mainly in agricultural regions and the ongoing marriage season, with about 38 lakh marriages expected to drive sales.