Pune: Retail sales of automobiles in India jumped 11.21 per cent on year to 32,08,719 units in November, riding on robust two-wheeler demand, Federation of Automobile Dealers Associations or FADA said on Monday.
The automobile industry had sold a total of 28,85,317 units in the same month last year.
Sales of two-wheelers soared 15.8 per cent to 26,15,953 units last month, as against 22,58,970 units in November 2023.
However, passenger vehicle retail declined 13.72 per cent at 3,21,943 units, as against 3,73,140 units in the year-ago month.
FADA said the passenger vehicles faced notable headwinds in the market.
"While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations," said CS Vigneshwar, president at FADA.
He said although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued.
The late occurrence of Deepawali at the end of October also caused a spillover of festive registrations into November, affecting the month's sales trajectory, Vigneshwar pointed out.
“Although rural interest was present, it failed to significantly improve sentiment. Inventory levels have reduced by about 10 days, but remain high at around 65-68 days," he noted.
FADA said the commercial vehicles sales also dropped 6 per cent on year to 81,967 units last month.
Vigneshwar said factors such as restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October impacted CV uptake.
"External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category," he added.
However, three-wheeler sales increased 4.23 per cent to 1,08,337 units, up from 1,03,939 units sold in the year-ago month.
FADA said the near-term outlook for December was not overwhelmingly strong across segments, but it leans towards stability with pockets of potential growth, underlining a sentiment that overall remains cautiously optimistic.
With prospects of a bumper Kharif harvest likely to temper food inflation, the broader macroeconomic environment appears set to improve, potentially aiding consumer sentiment in the months ahead, Vigneshwar said.
