Indian auto sales hit a record high during the festival season, with all sectors growing year-over-year except tractors. Overall sales grew 19% to 37,93,584 units, with passenger car retail sales up 10% from 4,96,047 units last year, according to FADA.
On Tuesday (November 28), dealers’ body FADA reported record auto sales in India this Christmas season, spurred by healthy demand. All segments except tractors saw year-on-year growth. This year’s 42-day festive period saw 37,93,584 car sales, up 19% from 31,95,213 previous year. The first day of Navratri and the 15 days after Dhanteras saw passenger car retail sales rise 10% to 5,47,246 units from 4,96,047 last year.
“Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Diwali, ending with a 10% growth rate,” FADA President Manish Raj Singhania stated.
Sports utility vehicles were the most popular during the holidays, he said.
Singhania said passenger car inventory levels remain a major problem as OEMs push dispatch, maintaining the inventory rate near record highs. Two-wheeler registrations rose 21% to 28,93,107 from 23,96,665 in 20222. “Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases,” stated.
In 42 days, commercial vehicle sales rose 8% to 1,23,784 units.
Three-wheeler registrations rose 41% to 1,42,875 from 1,01,052 in the previous year. Tractor sales fell to 86,572 from 86,951 during the holidays last year.
“Tractors, which saw 8.3 per cent decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5 per cent decline,” added Singhania.
The holiday season began on October 15 and finished on November 25. It ran from September 26 to November 6 last year.
FADA collected car registration data from 1,355 RTOs/1,442. We represent over 15,000 auto dealerships with over 30,000 outlets in India.
Conclusion
Indian car sales hit a record high during the festive season due to strong demand. The 42-day festive period saw sales rise 19% to 37,93,584 units from 31,95,213 previous year. Passenger vehicle retail sales grew 10% to 5,47,246 from 4,96,047 last year. By Diwali, growth reached 10% after Navratri’s underperformance. Sport utility vehicles were the most popular throughout the holidays. Unfortunately, OEMs continue to deliver passenger vehicles, keeping inventory rates around record highs. Two-wheeler registrations rose 21% to 28,93,107 units this year, with rural areas driving the increase. Commercial vehicle sales rose 8% to 1,23,784 in 42 days. In the study period, three-wheeler registrations rose 41% to 1,42,875 units. Tractor sales fell to 86,572 from 86,951 during the holidays last year.
