Auto Retail Sales Hit Record High In November On Festive Boost
Both two-wheeler and passenger vehicle sales hit highest ever monthly sales, Federation of Automobile Dealers Associations said.
Retail sales of automobiles hit an all-time monthly high in November, as the festive season boosted sales in two-wheeler and passenger vehicle category.
“November 2023 Auto Retail sale creates history by selling 28.54 lakh vehicles, surpassing March 2020, which sold 25.69 lakh vehicles during the auto industry's transition from BS-4 to BS-6 emission norms,” the Federation of Automobile Dealers Associations said in a release on Wednesday.
Both two-wheeler and passenger vehicle sales hit highest ever monthly sales, the auto retail body said.
Two-wheeler sales jumped 21% year-on-year to 22.5 lakh units, beating previous record of 20.7 lakh unit sales in March 2020. The passenger vehicle sales surpassed previous high of 3.57 lakh unit sales in October 2022, as retails grew 17% to 3.60 lakh units in November.
Auto Sales In November (YoY)
Passenger vehicle sales rose 17% to 3.60 lakh units.
Two-wheeler sales rose 21% to 22.5 lakh units.
Commercial vehicle sales fell 2% to 84,586 units.
Tractor sales fell 21% to 61,969 units.
Three-wheeler sales up 23% to 99,890 units.
Two-wheeler sales continued to sustain momentum after the festivals, helped by a busy marriage season, with an estimated 38 lakh marriages between Nov. 23 and Dec. 15, FADA said.
However, the auto body flagged concerns on a slowdown in demand and bookings in the passenger vehicle category post festivities.
A critical challenge of slow-moving inventory due to a mismatch in demand and supply is still not resolved, said Manish Raj Singhania, president at FADA. He urged carmakers to reduce dispatches in the entry-level category and announce discounts to clear off the slow-moving stock at dealerships.
Even the carmakers have said the demand is slowing down and sales growth might be muted from hereon.
"It appears the growth levels for next year may not be high. You would see some tapering off on the SUV growth and unless the smaller car segment revives, it might be difficult to see a large growth," Shashank Srivastava, senior executive officer of marketing and sales at Maruti Suzuki India Ltd., told BQ Prime in an interview.
While two-wheeler and passenger vehicle sales were at record high, the commercial vehicle and tractor sales fell in the month.
Tractor sales plummeted 21% to 61,969 units, as demand slowed down with unseasonal rains damaging crops in some regions.
The commercial vehicle sales fell nearly 2% to 84,586 units with moderating freight demand after festivals and states going into elections added to the woes, as government’s demand for such vehicles fell.
