MUMBAI: The Federation of Automobile Dealers Associations (FADA) has released its vehicle retail data for the 42-day festive period of FY2023, which started on the 1st day of Navratri and ended 15 days post-Dhanteras. According to the report, vehicle sales climbed to 37.93 lakh, a 19% increase from last year’s 31.95 lakh, marking a new milestone for the industry.
The report highlights significant growth in the two-wheeler, three-wheeler, commercial vehicles, and passenger vehicles, with respective rises of 21%, 41%, 8%, and 10%. However, the tractor segment experienced a slight decline of 0.5%. The surge in two-wheeler purchases was particularly contributed to by rural areas.
Despite initial underperformance during Navratri, particularly in the passenger vehicle sector, the situation improved by Deepawali, ending with a 10% growth rate. SUVs were the highest-demanded vehicles, but inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch, thus keeping the inventory rate at near all-time high levels.
Tractors, which saw an 8.3% decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5% decrease. This turnaround highlights the robust purchasing power in rural India.
FADA President, Mr. Manish Raj Singhania, commented on the festive period retails, stating, “During the 42-day festive period of FY2023, we reached a new milestone with vehicle sales climbing to 37.93 lakh, a 19% increase from last year’s 31.95 lakh.“
The report also includes a chart showing the vehicle retail data for the 42-day festive period, with two-wheelers leading the way with 28,93,107 sales, followed by passenger vehicles with 5,47,246 sales.
FADA is the apex national body of the automobile retail industry in India, representing over 15,000 automobile dealerships with over 30,000 dealership outlets, including multiple associations of automobile dealers at the regional, state, and city levels. Together, they employ approximately 5 million people at dealerships and service centers.
Overall, the report indicates a positive outlook for the Indian automobile industry, with record-breaking sales during the festive period. However, concerns over inventory levels for passenger vehicles remain a significant challenge for the industry.
