Festival Demand Drives Auto Sales to Double-Digit Growth in October

Pune: Automobile dispatches to dealerships rose in double digits in October across passenger vehicle, two-wheeler and three-wheeler categories in anticipation of higher sales during festivals.

Automakers in India expect strong sales during November for the days leading up to Diwali.

Thus, to cater to the festival demand, dealerships stock up enough inventory for retail sales.

Passenger vehicle wholesales in October grew 16 per cent year-on-year to 3,89,714 units, two-wheeler sales grew 20 per cent to 18.96 lakh units and three-wheeler sales rose 42 per cent to 76,940 units.

“Both passenger vehicles and three-wheelers have posted the highest sales of October, while the two-wheeler segment also posted good sales in the month. All the three segments have posted double-digit growth," Vinod Aggarwal, president of the Society of Indian Automobile Manufacturers or Siam, said in a statement.

However, the Federation of Automobile Dealers Associations, the apex body for auto retail, has asked carmakers to reduce vehicle dispatches and launch attractive schemes to clear out the all-time high inventory in the channel.

However, Aggarwal said this growth momentum is encouraging for the industry, which has been enabled by the government’s conducive policies and the ongoing festive season.

Total vehicle sales across categories grew 20 per cent YoY to 23,62,453 units in October, as compared with 19,68,867 units in the corresponding month last year.