NEW DELHI: Retail automobile sales in November recorded a rise of 11.21 per cent, majorly resulting from sturdy demand for 2-wheelers, in line with the Federation of Automobile Dealers Associations (FADASales totaled 3,208,719 items, in comparison with 2,885,317 items throughout the identical month final 12 months.
Two-wheeler retail sales reached 2,615,953 items in November 2024, up from 2,258,970 items in November 2023, marking a progress of 15.8 per cent. This enhance was driven by sustained demand following the festive season.
However, passenger automobile retail sales declined by 13.72 per cent, falling to 321,943 items resulting from important challenges, in line with FADA.
“While November was initially expected to build on prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations,” CS Vigneshwar, FADA president, informed PTI.
He additionally informed that though rural markets supplied some help, notably in the two-wheeler class, marriage-associated sales remained restricted.
“Inventory levels have reduced by about 10 days but remain high at around 65-68 days,” he stated.
Vigneshwar additionally highlighted that the late timing of Diwali, which fell on the finish of October, precipitated a spillover of festive registrations into November, influencing the month’s sales developments.
“Dealers cited weak market sentiment, limited product variety, and insufficient new launches, compounded by the shift of festive demand into October,” stated Vigneshwar.
He reiterated FADA’s name for unique tools producers (OEMs) to higher handle stock, making certain the business begins the brand new 12 months on a stronger be aware whereas lowering reliance on further reductions.
FADA reported a 6.08 per cent decline in industrial automobile sales final month, with 81,967 items offered in comparison with 87,272 items in November 2023.
Commercial automobile sales had been impacted by elements comparable to restricted product choices, points with older fashions, lowered monetary help, and the absence of main festivals in November following a powerful October, Vigneshwar stated.
“External elements such as elections, a slowdown in the coal and cement industries, and weak market sentiment also weighed heavily on this category,” he added.
Three-wheeler sales in November reached 108,337 items, marking a rise of 4.23 per cent in comparison with 103,939 items in the identical month final 12 months.
Regarding the general close to-time period outlook, FADA acknowledged: “While the near-term outlook for December is not overwhelmingly strong across segments, it leans towards stability with pockets of potential growth, underlining a sentiment that overall remains cautiously optimistic.”
The outlook for the broader macroeconomic surroundings seems constructive, with a plentiful Kharif harvest anticipated to ease meals inflation and probably enhance client sentiment in the months forward. However, the December outlook, primarily based on seller suggestions, stays combined, the report added.
