The Federation of Automobile Dealers Associations (FADA) has reported a groundbreaking surge in vehicle retail sales for November 2023. FADA President, Mr. Manish Raj Singhania, highlighted the historic achievement as the Indian Auto Retail Industry witnessed the sale of 28.54 lakh vehicles, surpassing the previous record set in March’20 during the BS-4 to BS-6 transition.
In specific categories, the 2W and PV segments set new records, with 2W selling 22.47 lakh vehicles and PV reaching 3.6 lakh vehicles. The overall growth for November’23 showed a remarkable 18% YoY increase and a substantial 35% MoM growth.
Key Highlights:
- Historic Sales Achievement: November’23 marked a historic month with 28.54 lakh vehicles sold, surpassing the previous high in March’20.
- Record-Breaking Performance: The 2W and PV categories achieved all-time highs, with 2W sales reaching 22.47 lakh vehicles and PV reaching 3.6 lakh vehicles.
- Overall Growth: Total retail sales grew by 18% YoY, with 2W, 3W, and PV categories showing growth of 21%, 23%, and 17%, respectively.
- Month-on-Month Growth: The 2W category experienced an impressive 49% MoM growth, leading the industry to a 35% overall growth.
- Marriage Season Boost: The post-festive period coincides with approximately 38 lakh marriages, traditionally boosting vehicle sales, particularly in rural India.
- PV Inventory Concerns: FADA urges PV OEMs to address high inventory, currently above 60 days, with attractive schemes to stimulate year-end buying.
Challenges and Outlook:
- Weather Impact: Severe rains and hailstorms in west and south India are anticipated to impact rabi cultivation, potentially affecting vehicle sales.
- CV Category Challenges: Commercial vehicles faced challenges in Nov’23, influenced by poor market sentiment, unseasonal rains, and election-related uncertainties.
- Near-Term Outlook: The 2W category is expected to benefit from liquidity boosts in agricultural regions and the ongoing marriage season. The PV sector shows potential for growth with year-end offers and discounts.
Online Members Survey Findings:
- Inventory: Average inventory for Passenger Vehicles ranges from 61-64 days, while Two-Wheelers range from 32-37 days.
- Liquidity: 45.23% reported good liquidity, 40.64% neutral, and 14.13% bad.
- Sentiment: 45.58% reported good sentiment, 38.87% neutral, and 15.55% bad.
- Expectation from December: 47.35% anticipate growth, 43.46% expect a flat outcome, and 09.19% foresee de-growth.
