The Federation of Automobile Dealers Associations (FADA) has unveiled its latest Vehicle Retail Data for October 2023.
Commenting on October 2023 Auto Retails, FADA President, Mr Manish Raj Singhania, highlighted the impact of the inauspicious Shraddh period that persisted until the 14th of the month, stating that a year-over-year comparison might not accurately reflect the actual trajectory of growth in the Indian Auto Retail sector. However, when comparing the data on a month-over-month basis, it is evident that Auto Retails have flourished, achieving a 13% increase, with contributions from all categories.
- Two-wheelers saw a 15% increase in MoM sales.
- Three-wheelers experienced a 2% growth.
- Passenger vehicles recorded a 7% increase.
- Tractor sales surged by 15%.
- Commercial vehicles also saw a 10% rise in sales, underscoring the sector’s robust growth momentum.
Navratri of 2023 marked a milestone with retail sales soaring by 18% year-over-year, surpassing the figures of Navratri 2017. Except for tractors, which saw an 8% decline, all categories exhibited commendable growth.
- Two-wheelers and three-wheelers grew by 22% and 43%, respectively.
- Commercial vehicles and passenger vehicles experienced increases of 9% and 7%, respectively.
The first half of October ’23, marked by the Shraddh period, saw an 8% YoY decline. However, a MoM comparison reveals a 13% surge, indicative of resilient market demand.
With ongoing festivities, all automotive categories experienced momentum. Notably, two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles grew by 15%, 2%, 7%, 15%, and 10% respectively on a MoM basis.
In the 2W category, festive cheer, stronger rural demand, and enhanced availability of models contributed to a solid market momentum. States going into elections injected optimism into the market, leading to an increase in government spending and improved liquidity.
The 3W segment continued its upward trend during Navratri, driven by competitive finance options and a significant rise in e-rickshaw interest, signaling a healthy move towards electrification.
The CV segment experienced robust bookings and a positive uptake in retail sales, buoyed by festive cheer and strategic price support from manufacturers. The demand for light and small commercial vehicles surged, driven by infrastructure development activities and the need for vehicle replacement.
The PV segment navigated a complex landscape, marked by both enthusiasm and caution. During Navratri, the industry witnessed a surge in bookings, buoyed by the introduction of compelling new models, particularly SUVs, and the availability of attractive consumer offers.
The near-term outlook for the auto sector is a blend of highs and lows as we approach year-end. Festivities, along with the harvest season, are expected to boost 2W sales, with optimism fueled by new schemes and a push towards electrification. However, the PV segment is navigating through a tricky phase, with high inventory levels raising concerns for dealerships.
Key Findings from an Online Members Survey:
- The average inventory for Passenger Vehicles ranges from 63-66 days.
- The average inventory for Two-Wheelers ranges from 40-45 days.
FADA remains actively engaged in providing its inputs and suggestions on various aspects of the auto industry to sustain its growth in India.
