In October 2022, the Federation of Automobile Dealers Associations (FADA) reported a 7.73% year-on-year reduction in retail sales of domestic automobiles, with a total of 2,117,596 units sold. The decline was primarily attributed to reduced demand for two-wheelers during the inauspicious Shraddh period, affecting new purchases.

Commercial vehicle retail sales, on the other hand, saw a significant increase of 10.26% in October, with 88,699 units sold compared to 80,446 units in the same month of the previous year.

FADA President Manish Raj Singhania pointed out that the Shraddh period’s impact in the first half of October might not accurately reflect the actual growth trajectory of the Indian Auto Retail sector. A month-on-month comparison revealed a 13% growth, indicative of resilient market demand, as the month progressed with ongoing festivities.

During Navratri, retail sales witnessed substantial growth, with two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles experiencing increases of 22%, 43%, 9%, and 7%, respectively. 

Singhania highlighted the positive trends in the two-wheeler category, driven by festive enthusiasm and rural demand. “Navratri of 2023, marked a milestone with retail sales soaring by 18 percent year-over-year, surpassing the figures of Navratri 2017. Except for tractors, which saw an 8 percent decline, all categories exhibited commendable growth,” he stated. The passenger vehicles segment showed a complex landscape with enthusiasm and caution, influenced by new model launches and consumer offers.

However, local elections and market saturation had varying effects on sales across regions. The three-wheeler segment continued to see demand growth, driven by competitive finance options and rising interest in e-rickshaws.

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Looking ahead, FADA anticipates a mixed outlook for the auto sector as the year-end approaches. Festivities and the harvest season are expected to boost two-wheeler sales, despite supply concerns, and the commercial vehicle segment is poised for a strong November.

However, the passenger vehicle segment faces challenges with high inventory levels, and the year-end discounts might impact immediate sales. FADA emphasizes the need for immediate and decisive action to address potential dealer distress due to unsold stock, which could have broader industry implications.

In October 2022, the Federation of Automobile Dealers Associations (FADA) reported a 7.73% year-on-year reduction in retail sales of domestic automobiles, with a total of 2,117,596 units sold. The decline was primarily attributed to reduced demand for two-wheelers during the inauspicious Shraddh period, affecting new purchases.

Commercial vehicle retail sales, on the other hand, saw a significant increase of 10.26% in October, with 88,699 units sold compared to 80,446 units in the same month of the previous year.

FADA President Manish Raj Singhania pointed out that the Shraddh period’s impact in the first half of October might not accurately reflect the actual growth trajectory of the Indian Auto Retail sector. A month-on-month comparison revealed a 13% growth, indicative of resilient market demand, as the month progressed with ongoing festivities.

During Navratri, retail sales witnessed substantial growth, with two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles experiencing increases of 22%, 43%, 9%, and 7%, respectively. 

Singhania highlighted the positive trends in the two-wheeler category, driven by festive enthusiasm and rural demand. “Navratri of 2023, marked a milestone with retail sales soaring by 18 percent year-over-year, surpassing the figures of Navratri 2017. Except for tractors, which saw an 8 percent decline, all categories exhibited commendable growth,” he stated. The passenger vehicles segment showed a complex landscape with enthusiasm and caution, influenced by new model launches and consumer offers.

However, local elections and market saturation had varying effects on sales across regions. The three-wheeler segment continued to see demand growth, driven by competitive finance options and rising interest in e-rickshaws.

Exciting news! We’re now on WhatsApp Channels too.  Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!

Looking ahead, FADA anticipates a mixed outlook for the auto sector as the year-end approaches. Festivities and the harvest season are expected to boost two-wheeler sales, despite supply concerns, and the commercial vehicle segment is poised for a strong November.

However, the passenger vehicle segment faces challenges with high inventory levels, and the year-end discounts might impact immediate sales. FADA emphasizes the need for immediate and decisive action to address potential dealer distress due to unsold stock, which could have broader industry implications.