New Delhi: The demand for automobiles during the festive season of this year has seen a notable increase, with sales surging by 11.76 percent compared to the previous year's 38.37 lakh units, as reported by the Federation of Automobile Dealers Associations (FADA).
Over the 42-day festive period, which spans from the commencement of Navratri to 15 days following Dhanteras, a total of 42.88 lakh vehicles were registered.
The data indicates a robust performance in the two-wheeler segment, experiencing a 13.79 percent growth to a total of 33.11 lakh units, primarily attributed to a strong demand from rural areas.
Passenger vehicles also showed a significant rebound during the festive season, following a sluggish start earlier in the year. This segment saw a 7.10 percent increase, with 6.03 lakh units sold, driven by pent-up demand and extensive discounts offered during the festive period.
FADA has projected a further reduction in passenger vehicle stock levels, based on the retail figures from October.
The passenger vehicle segment also demonstrated impressive growth, with sales increasing by 32 percent year-on-year.
"While we are to be commended for these achievements, it is acknowledged that we could have potentially met or surpassed our target of 45 lakh units had it not been for the unseasonal heavy rains in South India, particularly in Bengaluru and Tamil Nadu, and the impact of Cyclone Dana in Odisha," stated C S Vigneshwar, President of FADA.
FADA has noted that the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and Cyclone Dana in Odisha, slightly hindered the achievement of the ambitious target of 45 lakh units.
Looking forward, FADA anticipates a further reduction in passenger vehicle inventory levels as dealers gear up for the final days of the year.
"With 1.5 months remaining before the year comes to an end, FADA urges Original Equipment Manufacturers (OEMs) to focus on the liquidation of their 2024 stock, enabling Dealers to start the new year with an ideal FADA-recommended inventory level of 21 days," Vigneshwar emphasized.
Earlier this month, FADA released data indicating that India's overall auto sales witnessed a strong 32 percent year-on-year (YoY) growth in October, with the two-wheeler segment leading the surge.
This segment experienced an impressive 36 percent YoY growth, benefiting from the convergence of major festivals such as Navratri and Diwali, which significantly increased consumer demand.
