 "car production, car manufacturing, auto industry")
Automobile retail sales fell by 8 per cent in October compared to the same period last year, as two-wheeler (2W) and passenger vehicles (PV) sales declined by 13 per cent and 1.4 per cent year-on-year (Y-o-Y), respectively. However, the Navratri period (October 15-24) marked record sales for the sector, with an 18 per cent increase.
"The month commenced under the shadow of the inauspicious Shraddh period, persisting until October 14. Consequently, a year-on-year comparison may not accurately reflect the actual trajectory of growth in the Indian auto retail sector," said Manish Raj Singhania, president of FADA. Last year, both Navratri and Diwali fell during October, he added.
Those following the Hindu calendar avoid purchases during the Shraddh period.
During October this year, total sales of 2.12 million units were recorded compared to 2.29 million units during October 2022, according to data shared by the Federation of Automobile Dealers Associations (FADA). On the other hand, three-wheeler (3W) sales were up by 46 per cent, commercial vehicles by 10.3 per cent, and tractors by 6.2 per cent during the period under review.
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Navratri of 2023 marked a milestone, with retail sales soaring by 18 per cent Y-o-Y, surpassing the figures of Navratri 2017, the earlier record high. Except for tractors, which saw an 8 per cent decline, all categories exhibited commendable growth. Two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles posted 22 per cent, 43 per cent, 9 per cent, and 7 per cent Y-o-Y increase, respectively.
"The 2W 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. States going into elections also injected optimism into the market, leading to an increase in government spending and improved liquidity," Singhania said.
When compared month-on-month, auto retails flourished, achieving a 13 per cent increase, with contributions from all categories. Two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles expanded by 15 per cent, 2 per cent, 7 per cent, 15 per cent, and 10 per cent, respectively, underscoring the sector's robust growth momentum.
"Despite a shift in festival dates — with Diwali moving to November — the anticipation of the festive season stimulated purchase intent, and dealers reported good stock preparation and robust ground efforts that led to an uptick in sales figures, showcasing a resilient and adaptive market," he added.
In two-wheelers, top players like Hero MotoCorp, Honda Motorcycle, and TVS Motor saw their sales decline by 26 per cent, 10 per cent, and 5.4 per cent, respectively, compared to October last financial year. Three-wheelers clocked a record 104,711-mark in October, compared to 102,426 during September, breaching the 100,000 mark for the first time in these two months.
In passenger vehicles, too, sales of Maruti Suzuki India dipped by 3 per cent, Hyundai Motor India by 2 per cent, and Tata Motors by 3 per cent during the period under review. "Festivities along with harvest season (especially paddy) are expected to boost 2W sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns. CVs are looking at a strong November, with festive and construction activities enhancing demand alongside anticipated financial schemes," Singhania said.
However, the PV segment is navigating a tricky phase, he said, adding that festival season may spike bookings "yet the shadow of year-end discounts looms over immediate sales".
With passenger vehicle inventory levels soaring to an all-time high of 63-66 days, dealerships are signalling capacity concerns. Fada has issued a red flag, urging original equipment manufacturers (OEMs) to not only moderate vehicle dispatches, but also introduce more aggressive and attractive schemes promptly.
