Revving up. Auto retail sales jump 20 per cent YoY in September

Automotive retail in September showcased robust double-digit year-on-year (YoY) growth of 20 per cent, and except for tractors, which witnessed a 10 per cent decline, all other categories experienced growth, with two-wheelers (2W) seeing a 22 per cent increase, three-wheelers (3W) 49 per cent, passenger vehicles (PV) 19 per cent, and commercial vehicles (CV) up by five per cent.

According to monthly retail sales data shared by the Federation of Automobile Dealers’ Associations (FADA), PV sales grew 19 per cent YoY to 3,32,248 units during the month, as compared with 2,79,137 units in the corresponding month last year.

Two-wheeler sales also grew 21.68 per cent YoY to 13,12,101 units in September, as against 10,78,286 units in the same month last year.

Three-wheeler sales grew 48.58 per cent YoY to 1,02,426 units last month, as compared with 68,937 units in September 2022, the FADA report said.

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The commercial vehicles segment grew five per cent YoY to 80,804 units during the month, as against 77,054 units in the corresponding month last year.

Tractor sales, however, declined by around 10 per cent YoY to 54,492 units in September, as compared with 60,321 units in September 2022.

“September’s auto retail celebrated a 20 per cent YoY leap, continuing momentum from the previous month, while marking a 3.5 per cent month-on-month (MoM) increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days,” Manish Raj Singhania, President, FADA, said.

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Passenger vehicles surge ahead

The PV category experienced a stimulating resurgence as the market enjoyed improved vehicle availability and an influx of new and refreshed models from manufacturers, he said, adding that this uplift was supported by enhanced supplies and increasing variety in the product portfolio, answering to diversifying consumer demand.

“The market showed consistent demand for luxury cars and SUVs, signifying robust consumer appetite for premium segments. The segment also witnessed the benefit of good pending bookings and the launch of promising products, laying the groundwork for potential growth in the upcoming festive season,” he said.

Looking ahead to the festive season

On the near-term outlook, Singhania said as the festive season unfolds, a wave of anticipation and enthusiasm is expected to sweep across the automotive sector.

“In the 2W segment, although the initial half of the month might be quiet due to the Shraddh period, the upcoming festivals, including Durga Puja and Navratri, are predicted to brighten the sales atmosphere, with enhanced customer sentiment and competitive pricing playing pivotal roles. The introduction of new models will add to the optimism,” he said.

With the inventory for passenger vehicles reaching an unprecedented 60-65 days threshold, it’s crucial for manufacturers to proceed with caution, avoiding excessive inventory pushes, thereby, ensuring a market that’s both vibrant and stable during the festive spree. The favourable monsoon patterns, with India receiving 94 per cent of expected rainfall, sets a positive backdrop for the festive season, he added.

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