In a report released on November 28, the Federation of Automobile Dealers Associations (FADA) revealed that automobile retailers successfully sold 37.93 lakh vehicles during the 42-day festive period in 2023. This marks a notable 19% increase compared to the previous year’s sales of 31.95 lakh vehicles.
The festive season, spanning from the first day of Navratri to 15 days after Dhanteras (October 15 to November 25), was equivalent to the timeframe between September 26 and November 6 in 2022.
Dynamic Trends in Automobile Sales: Overcoming Challenges and Surging Ahead
Despite a sluggish start, especially in the passenger vehicle sector during Navratri, the situation improved by Deepawali, culminating in a 10% growth rate. SUVs were the most sought-after vehicles, but the FADA report highlighted concerns about high inventory levels for passenger vehicles as original equipment manufacturers (OEMs) continued to dispatch more units, maintaining inventory rates near all-time highs.
Various categories witnessed remarkable sales, with two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles experiencing jumps of 21%, 41%, 8%, and 10%, respectively. However, the tractor segment saw a slight decline of 0.5%. FADA emphasized the significant contribution of rural areas to the surge in two-wheeler purchases.
Navigating Auto Sales Trends: Assessing the Impact of Festive Peaks and Inventory Challenges
The retailers’ association had previously reported the best Navratri sales data in six years earlier this month. Despite an 8% year-on-year decline in auto sales in the first half of October due to the Shraddh period, retail sales during Navratri soared by 18% annually, surpassing the figures from Navratri 2017.
As November sales approach conclusion, FADA reiterated caution regarding high inventory levels in the passenger vehicles segment, urging urgent attention from OEMs. The monthly October update had highlighted a mixed outlook for the auto sector, with festivities and the harvest season expected to boost two-wheeler sales. Challenges included supply concerns, while commercial vehicles anticipated a robust November due to festive and construction activities. The passenger vehicle segment faced uncertainties, with the shadow of year-end discounts impacting immediate sales, making November data crucial to monitor.
