Festivals Boost Retail Auto Sales Across Segments In October
Indian auto retail sales jumped 47.6% year-on-year to 20.94 lakh units in October
Auto sales across categories registered double-digit sales in October due to festivities-related demand.
Indian auto retail sales jumped 47.6% year-on-year to 20.94 lakh units in the month, according to the Federation of Automobile Dealers Associations. Even compared with corresponding pre-pandemic month of 2019, sales grew 8.3%.
For the 42-day festival period, the retail auto sales rose 28.8% to 28.88 lakh units. The sales were nearly 6% higher when compared with pre-pandemic festive period of 2019.
“Festive 2022 brings cheers to the Auto Industry, as for the first time customers of every category came out in good numbers and took part in festive purchases thus making it the best in last four years,” Manish Raj Singhania, president of FADA, said in a press release.
October Auto Retail Sales (YoY)
Passenger vehicle sales rose 40.6% to 3.29 lakh units.
Two-wheeler sales jumped 51.1% to 15.71 lakh units.
Commercial vehicle sales rose 25.4% to 74,443 units.
Sales of tractors rose 17.4% to 53,362 units.
Three-wheeler sales rose 65.9% to 66,763 units.
With better vehicle availability along with new launches, passenger vehicle sales in festival period were the best in a decade, outgrowing 2020 numbers by 2%, Singhania said.
According to FADA, the festival period started from first Navratri on Sept. 26 and ended on Nov. 6, which is 15 days post-Dhanteras as typically there is a delay of 10-12 days in vehicle registrations.
The sales growth was seen in two-wheelers as well, where demand has remained muted for nearly three years now due to higher prices and lower purchasing power of customers due to the pandemic.
The two-wheeler sales grew 51.1% year-on-year to 15.71 lakh units in October. Compared with October 2019, the sales were 5.8% higher.
“With both Navratri and Deepawali majorly falling in a single month, the month of October saw double foot fall at Dealerships,” FADA said. The association said dealers have seen an improvement in sentiments at the rural level, helped by new launches and customer schemes, but the same needs to sustain for at least next three to four months.
Auto Retail Sales In Festivals (YoY)
Passenger vehicle sales rose 34.3% to 4.56 lakh units.
Two-wheeler sales jumped 26.4% to 21.55 lakh units.
Commercial vehicle sales rose 29.3% to 1.06 lakh units.
Sales of tractors rose 29.8% to 77,602 units.
Three-wheeler sales rose 68.2% to 93,239 units.
Festival period also improved better fleet sales as the commercial vehicles segment witnessed over 29% growth in sales to 1.06 lakh units in the 42 days. In October, the sales jumped over 25%.
With mining and infrastructure projects increasing in various regions, demand has been keeping well and is also coming back on track, FADA said.
Three-wheelers was the only category, which remained below pre-pandemic sales in October. The sales grew 65.9% year-on-year but remained 0.6% lower compared with the tally in October 2019.
The sub-category figures show the shift towards electric vehicle adoption while conventional vehicles are no more favourites, the dealer's association said. In few pockets due to permit issues, new vehicle sales have taken a hit during the month, it said.
Outlook
The dealer’s body highlighted that sales usually soften in the immediate next month after festivities. It also flagged few headwinds in rural markets for two-wheeler segment.
“For auto retails to show strength, the two-wheeler segment will have to grow for at least three to four months over pre-covid months to come out of the woods,” the associations’ statement said.
In the passenger vehicle segment, the association continued to see weak demand in the entry-level category of vehicles.
While most automakers have said the new phase of emission norms from April 2023 will not lead to any significant increase in price, FADA said the vehicles will definitely see a steep price increase across all categories of vehicles as and when they hit the market.
With year-end near, many customers will wait for vehicles manufactured in the new-year and hence FADA remains cautious for the coming months, it said.