NEW DELHI: Retail auto sales during 10-day Navratri festival period of 2023 rose 18% annually to 759,281 units, a new high surpassing the figures for this period of 2017, according to data issued by the Federation of Automobile Dealers Associations (FADA).
During the 10 days, all categories except tractors saw gains. Two-wheelers, three-wheelers, commercial vehicles and passenger vehicles (PVs) grew by 22%, 43%, 9% and 6.5%, respectively, while tractors faced an 8% decline. Two-wheeler sales during this period stood at 540,325 units while 140,082 units of PVs were retailed.
FADA President Manish Raj Singhania said the two-wheeler category during the Navratri period and throughout October saw several positive trends, buoyed by festive cheer and stronger rural demand. Enhanced availability of models, especially those in high demand from the previous year, along with better financial schemes, contributed to a solid market momentum.
The passenger vehicles segment, however, navigated a complex landscape, marked by both enthusiasm and caution, said Singhania. “During Navratri festival, despite regional variability, the passenger vehicle industry witnessed a surge in bookings, buoyed by the introduction of compelling new models, particularly SUVs and the availability of attractive consumer offers.
However, the impact of local elections and market saturation meant that the festive spirit didn’t translate uniformly into sales across all regions,” added Singhania. In its near-term outlook, Fada said that the Festive days leading to Diwali might see a spike in PV bookings, yet the shadow of year-end discounts looms over immediate sales. The association also raised concerns about critical inventory levels for the PV segment at 63-66 days.
Without substantial interventions and if Diwali sales don’t rise to the occasion, the weight of unsold stock could lead to significant dealer distress, Fada said. Retail auto sales for the full month of October, however, fell 8% year-on-year to 21.18 lakhs as the first 15 days were impacted by the Shraddh, an inauspicious period in the Hindu calendar when people avoid making any new purchases.