Auto retail sales surge 11.76% during festive season 2024

With a remarkable 13.79% increase, two-wheeler retail sales led the growth chart in the automotive retail sector during the 42 days festive period from first day of Navratri to 15 days post Dhanteras, according to FADA data released today. Two-wheeler retail sales increased to 33,11,325 units. This surge was primarily attributed to strong rural demand by FADA.

The passenger vehicle segment demonstrated resilience, recording a 7.10% growth with 6,03,009 units sold. FADA President, Mr C S Vigneshwar, noted that this improvement was driven by "pent-up demand and unprecedented discounts available in the market."

Total vehicle registrations reached 42,88,248 units during the period, 11.76% higher from 38,37,040 units in festive season 2023.

However, the festive season performance also faced some headwinds. "We could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the cyclone Dana that affected Odisha," Vigneshwar explained.

The commercial vehicle segment showed modest sales growth of 1.02% to1,28,738 units, while three-wheelers registered a healthy 6.81% increase to 1,59,960 units. The only category to show decline was tractors, whose sales fell by 1.64% to 85,216 units compared to the previous year's festive period.

Looking forward, FADA has advised manufacturers to focus on liquidating 2024 stock before the calendar year ends, aiming to maintain the recommended 21-day inventory levels for dealers, entering 2025. The association expects commercial vehicle sales to strengthen with anticipated government infrastructure spending, while the tractor segment is projected to improve due to good rainfall and increased Minimum Support Price (MSP) for crops.

The data, collected from 1,368 out of 1,430 Regional Transport Offices (RTOs) across India, excludes figures from Telangana. The festive period analysis covered sales from October 3 to November 13 2024, encompassing the peak selling season from the first day of Navratri to 15 days post Dhanteras.

Established in 1964, FADA represents over 15,000 automobile dealerships with more than 30,000 outlets across India.