Led by a 36% rise in two-wheeler sales to over 2.06 million units, total automobile retails during the month rose to over 2.83 million units from over 2.14 million a year ago. The figures are, however, not strictly comparable as unlike this year, Navratri and Diwali took place in October and November in 2023.
Passenger vehicle sales advanced 32% to 483,159 units last month backed by steep discounts and attractive consumer offers by automakers, said FADA. A flurry of new model launches also lifted consumer sentiment and sales.
“October 2024 witnessed the convergence of two major festivals, Navratri and Diwali, both occurring in the same month. These festivities traditionally account for 30-35% of total annual auto sales, so the industry’s focus was keenly on how October would unfold. With dealers entering this crucial period fully committed and carrying all-time high inventory levels, the month did not disappoint,” said CS Vigneshwar, president, FADA. Rural markets again played a leading role in driving growth, particularly in the two-wheeler and passenger vehicle segments. Also, the government’s announcement of an increase in the minimum support price (MSP) for Rabi crops further boosted market sentiments, he said.
Most of the other automobile segments also recorded retail sales growth last month. While three-wheelers posted a 11% rise, tractor sales rose 3% and commercial vehicles increased 6%.
However, despite strong sales, the dealers’ lobby group flagged high inventory levels as a major concern.