Vehicle retail sales rise 12 per cent to 43 lakh units during 42-day festive demand

The growth was led by two-wheeler sales on the back of strong rural demand.

FADA also said this surge in vehicle sales indicated a positive trend in the automobile market during the 42-day festive period (from 1st day of Navratri to 15 days post Dhanteras).

Two-wheelers, three-wheelers, commercial Vehicles (CVs), and passenger vehicles (PVs) saw significant increases of 13.79 per cent, 6.81 per cent, 1.02 per cent, and 7.10 per cent, respectively.

The tractor segment, however, saw a slight decline of 1.64 per cent.

"We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with vehicles registered during this period—a growth of 11.76 per cent over last year's 38.37 lakh units. Two-wheeler sales were particularly robust, registering a 13.79 per cent growth to reach 33.11 lakh units, largely driven by strong rural demand,” said C S Vigneshwar, President at FADA.

As expected, passenger vehicles bounced back after a lull, growing by 7.1 per cent to 6.03 lakh units, spurred by pent-up demand and unprecedented discounts available in the market, he noted.

“While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha,” Vigneshwar pointed out.

Although FADA anticipates passenger vehicle stock levels will reduce from the October level, the entire picture on inventory will emerge by month-end, it said.