Automobile retail sales declined 8% in October

PUNE: Total retail sales of automobiles in India declined by 8 per cent year-on-year in the festive month of October due to Shraddh period which marked first half of last month, when people largely stay away from big-ticket purchases, data released by the Federation of Automobile Dealers Associations or FADA) showed on Monday.

Total vehicle retail sales in October stood at 21,17,596 units, down from 22,95,099 units recorded in the same period last year.

Shraadh marks an inauspicious period in the Hindu calendar which forbids making any new purchases during it.

FADA said retail sales of two-wheelers dropped 13 per cent at 15,07,756 units last month, as against 17,25,043 units reported in the corresponding period last year.

Passenger vehicle retail sales also fell 1.36 per cent at 3,53,990 units, down from 3,58,884 units sold in October 2022.

However, three-wheeler retail sales broke the trend, soaring 45.63 per cent last month at 1,04,711 units, against 71,903 units sold in the same period a year earlier.

Similarly, commercial vehicle retail sales jumped 10.26 per cent to 88,699 units last month, compared with 80,446 units sold last year.

“The month commenced under the shadow of the inauspicious Shraddh period, until October 14. Consequently, a year-on-year comparison may not accurately reflect the actual trajectory of growth in the Indian auto retail sector,” said FADA President, Manish Raj Singhania.

The data revealed that the first half of October, which included the Shraadh period, witnessed a fall of 8 per cent on a year-on-year (YoY) basis, while sequentially, the data indicated a growth of 13 per cent, representing the strong market demand, he pointed out.

FADA said that categories across the automotive industry are maintaining a strong pace amid the ongoing festive season.

Notably, Navratri 2023 reported a milestone with retail sales climbing 18 per cent on a year-on-year basis, crossing the numbers achieved during Navratri 2017.

“Except for tractors, which saw an 8 per cent decline, all categories exhibited commendable growth. Two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles experienced increases of 22 per cent, 43 per cent, 9 per cent, and 7 per cent, respectively during Navratri,” Singhania said.

He said the near-term outlook for the auto sector is a blend of highs and lows as it approaches year-end.

“Festivities along with harvest season, especially paddy, are expected to boost two-wheeler sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns,” FADA said.