Festive vehicle sales in India surge to record high

Vehicle sales in India during the 42-day festive period surged 19% to a record high of 37.93 lakh units. This is a significant increase from the 31.95 lakh units sold during the same period last year.

Vehicle sales growth

All segments of the auto industry saw growth during the festive period, with two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles all registering increases. Two-wheeler sales grew by 21%, three-wheeler sales by 41%, commercial vehicle sales by 8%, and passenger vehicle sales by 10%. Tractors were the only segment to see a decline, with sales falling by 0.5%.

The strong growth in vehicle sales was driven by several factors, including a strong rural economy, improved consumer sentiment, and attractive financing offers. Rural areas were particularly strong contributors to the surge in two-wheeler purchases.

Expert comments

Despite the strong overall growth, there were some concerns expressed by FADA President Manish Raj Singhania. He noted that inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch, thus keeping the inventory rate at near all-time high levels.

Singhania also noted that tractors, which saw an 8.3% decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5% decrease. This turnaround highlights the robust purchasing power in rural India.

The strong growth in vehicle sales during the festive period is a positive sign for the Indian auto industry. The industry is expected to continue to grow in the coming months, driven by many favourable factors.

Vehicle Retail Data for 42 days Festive Period

Source: FADA Press Release

The 42-day festive period in India ranges from the first day of Navratri to 15 days post-Dhanteras. This is due to the time lag for vehicle registration. During this period, there is a surge in demand for vehicles as people consider it auspicious to buy new cars or motorcycles during this time.

The above data collected is of the following days:

Festive 2023: October 15th 2023 – November 25th 2023

Festive 2022: September 26th, 2022 – November 6th, 2022

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.