NEW DELHI: During the 42-day festive period of CY23 (from 1st day of Navratri and ends 15 days post Dhanteras), the automobile sales touched a new high. Retail vehicle sales climbed to 37.93 lakh units, a 19% rise from last year’s 31.95 lakh units, as per the latest data shared by the Federation of Automobile Dealers Associations (FADA).
The surge in sales during the auspicious period was led by two-wheelers as this category witnessed a big recovery after struggling for the past few years. During the 42-day period under observation, two-wheeler sales registered an impressive growth of 21% to 28.93 lakh units. Passenger vehicle (PV) sales, led by demand for SUVs, grew by 10% to 547,246 units during the festive period.
“Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases. Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Deepawali, ending with a 10% growth rate,” said FADA President Manish Raj Singhania.
Earlier this month, Hero MotoCorp, country’s largest two-wheeler maker, recorded its highest-ever festive sales, clocking more than 14 lakh units in retail sales during the 42-day festive period – between the first day of the Navratras and Bhai Dooj – this year. Hero had said robust customer demand in the rural markets, in addition to the very positive sentiments in key urban centers, drove sales.
On passenger vehicle sales, Singhania said that while sports utility vehicles (SUVs) were the highest-demanded vehicles, inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch thus keeping the inventory rate at near to all-time high levels. According to auto industry executives, demand for entry-level small cars continues to remain weak and even after lucrative offers, there are few takers for hatchbacks.
During the festive period, a significant growth was also observed in the three-wheeler and commercial vehicles as they clocked a growth of 41% and 8%, respectively. Tractors, which saw an 8.3% decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5% decrease. “This turnaround highlights the robust purchasing power in rural India,” said Singhania.
