The automotive retail sales for September have seen an overall robust 20 percent growth. The overall sales came at 18,82,071 vehicles across segments, compared to 15,63,735 units for the same period last year. This includes sales of 13,12,101 two-wheelers (21.68% YoY), 102,426 three-wheelers (48.58% YoY), 332,248 passenger vehicles (19.03% YoY), 80,804 commercial vehicles (4.87% YoY). In contrast, the tractor segment with 54,492 units declined by 9.66% YoY.
Manish Raj Singhania, President, FADA said, ”September’s auto retail celebrated a 20% YoY leap, continuing the momentum from the previous month while marking a 3.5% MoM increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days.
In comparison to pre-Covid benchmarks, the sector enjoyed a robust 14% uplift, with the two-wheeler category registering growth (2%) for the first time.”
The data states that three-wheeler sales notched another all-time high in September, recording 102,426 units, which was 49 percent higher YoY and 3 percent MoM growth, surpassing the previous record of 99,907 units in August 2023.
The two-wheeler segment witnessed positive shifts as the festive season approached. The introduction of new models and promotional offers led to an increase in demand, especially in rural areas, fostering improved market sentiments. This uptick in demand was accompanied by heightened customer walk-ins and an overall positive market response. Additionally, better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season.
| Category | Sep ’23 | Sep ’22 | Change | Aug ’23 | Change |
| YoY | MoM | ||||
| Two-wheelers | 1,312,101 | 1,078,286 | 21.68% | 1,254,444 | 4.60% |
| Three-wheelers | 102,426 | 68,937 | 48.58% | 99,907 | 2.52% |
| E-Rickshaw (P) | 46,707 | 33,699 | 38.60% | 46,174 | 1.15% |
| E-Rickshaw with cart (G) | 3,038 | 1,784 | 70.29% | 3,095 | -1.84% |
| Three-wheeler (goods) | 9,014 | 6,510 | 38.46% | 9,060 | -0.51% |
| Three-wheeler (passenger) | 43,581 | 26,892 | 62.06% | 41,482 | 5.06% |
| Three-wheeler (personal) | 86 | 52 | 65.38% | 96 | -10.42% |
| Passenger Vehicles | 332,248 | 279,137 | 19.03% | 315,153 | 5.42% |
| Tractor | 54,492 | 60,321 | -9.66% | 73,849 | -26.21% |
| Commercial Vehicle | 80,804 | 77,054 | 4.87% | 75,294 | 7.32% |
| LCV | 46,213 | 47,043 | -1.76% | 43,929 | 5.20% |
| MCV | 5,623 | 5,185 | 8.45% | 5,895 | -4.61% |
| HCV | 25,237 | 22,713 | 11.11% | 22,137 | 14.00% |
| Others | 3,731 | 2,113 | 76.57% | 3,333 | 11.94% |
| Total | 1,882,071 | 1,563,735 | 20.36% | 1,770,181 | 3.49% |
In the commercial vehicle space, FADA says it observed a noticeable demand in coal, cement and general market load sectors, with the passenger carrier segment also experiencing a favourable uptick. This positive trend can be attributed to the adequate deployment of funds from the Central government towards infrastructure development, which fostered an environment for bulk deals, especially in tippers and government sectors.
Furthermore, there was a discernible improvement in market sentiment post-Covid, supporting healthy traction in HCVs, buses and LCVs and signalling a revitalised tourism market.
The PV category experienced a stimulating resurgence as the market enjoyed improved vehicle availability and an influx of new and refreshed models from various OEMs. This uplift was supported by enhanced supplies and an increasing variety in the product portfolio, answering to a diversifying consumer demand.
“The market showed consistent demand for luxury cars and SUVs, signifying a 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,” says Singhania.
Festive season to further drive growth
As the festive season unfolds, a wave of anticipation and enthusiasm is expected to sweep across the automotive sector. In the two-wheeler segment, although the initial half of the month might be quiet due to the Shraddh period, the aura of upcoming festivals like Durga Puja and Navratri is predicted to brighten the sales atmosphere, with enhanced customer sentiment and competitive pricing playing pivotal roles. The launch of new models is expected to further add to the optimism.
Similarly for CV, with the cessation of monsoons, a resurgence in infrastructure projects and essential goods transportation is anticipated in creating a robust demand. The market is likely to be buoyed by the availability of a broader range of vehicles and enticing finance options thus facilitating bulk purchases. In the passenger vehicle segment, the market foresees a boost with the launch of new products, improved availability of popular models and continued success of recently unveiled vehicles.
On the other hand, with the inventory for passenger vehicles reaching an unprecedented 60-65 days threshold, it’s crucial for OEMs 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 percent of expected rainfall will set a positive backdrop for the festive season.
“As we move past the Shraadh period on October 14, the market is poised for the onset of Navratri, heralding a 42-day festive window. With these promising indicators, FADA adopts an optimistic stance, anticipating a thriving festive season for the Indian auto retail sector.”
