Vehicle Sales in India Surge 11.2% in November
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New Delhi, December 10 (NationPress) Retail vehicle sales across various categories in India experienced a growth of 11.21%, totaling 32,08,719 units in November, a rise from 28,85,317 units during the same month last year. This growth trend is largely attributed to the increasing demand for two-wheelers, as per statistics from the Federation of Automobile Dealers Associations.
Sales of two-wheelers climbed to 26,15,953 units in November, up from 22,58,970 units in the corresponding month last year, reflecting a strong 15.8% increase.
In contrast, the retail sales of passenger vehicles (PV) saw a decline of 13.72%, reaching 3,21,943 units compared to 3,73,140 units in November of the previous year. The PV segment encountered significant challenges, as noted by the Federation of Automobile Dealers Associations (FADA) in their statement.
According to FADA President, C.S. Vigneshwar, "While November was anticipated to sustain its previous momentum, especially due to the marriage season, feedback from dealers indicates that this segment did not meet overall expectations."
He further commented, "Although rural markets provided some assistance, particularly in the two-wheeler segment, sales related to marriages remained lackluster."
The late celebration of Diwali at the end of October resulted in a spillover of festive registrations into November, which influenced the sales trends for the month, Vigneshwar added.
He further stated, "Despite the presence of rural interest, it did not significantly uplift market sentiment. Inventory levels have decreased by about 10 days, yet remain elevated at approximately 65-68 days."
For the commercial vehicles sector, FADA reported retail sales of 81,967 units last month, down from 87,272 units in November 2022, marking a 6.08% decline.
Vigneshwar pointed out that various factors, including limited product options, issues with older models, restricted financing support, and the absence of major festivals in November after a robust October, negatively impacted the uptake of commercial vehicles.
He also highlighted that external factors such as elections, a slowdown in the coal and cement sectors, along with weak market sentiment, heavily affected this category.
Vigneshwar reiterated FADA's appeal to Original Equipment Manufacturers (OEMs) to optimize inventory further, ensuring the industry enters the new year on a stronger note, thereby minimizing the necessity for additional discounts.
