Festive season auto sales soar to record high in 2023, says FADA

Pune: Automobile retail sales in India rose to a record high this festive season with all segments, except tractors, clocking year-on-year growth, the Federation of Automobile Dealers Associations or FADA said on Tuesday.

Total automobile sales rose 19 per cent to 37,93,584 units in the 42-day festive period this year as compared with 31,95,213 units last year.

In the 42-day festive period, which starts from the first day of Navratri and ends 15 days after Dhanteras, passenger vehicle retail sales jumped 10 per cent to 5,47,246 units, up from 4,96,047 units in the same period last year.

“Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Diwali, ending with a 10 per cent growth rate,” FADA President Manish Raj Singh said.

He pointed out that the sports utility vehicles were the most sought-after segment during the festive period.

Singhania however noted that inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch, thus keeping the inventory rate near all-time high levels.

Similarly, sales of two-wheelers surged 21 per cent year-on-year to 28,93,107 units this year from 23,96,665 units in 2022.

“Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases,” Singhania said.

Commercial vehicle sales rose 8 per cent year-on-year to 1,23,784 units in the 42-day window.

Also, the three-wheeler sales saw a 41 per cent increase to 1,42,875 units during the period from 1,01,052 units in the year-ago period.

Tractor sales however declined marginally to 86,572 units from 86,951 units in the festive period last year.

“Tractors, which saw an 8.3 per cent decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5 per cent decline," Singhania said.

festive period this year commenced on October 15 and ended on November 25.

Last year, it stretched between September 26 and November 6.

FADA said it collated vehicle registration data from 1,355 out of 1,442 RTOs.

FADA India represents over 15,000 automobile dealerships having over 30,000 dealership outlets across India.