The FADA retail sales data points to a robust October and sparkling festive season for Auto Inc. Overall vehicle retail jumped over 47 percent to 20,94,378 from 14,18,726 vehicles sold last October. Even compared to 2019 October, it gained 8 percent plus from the 19,33,484 units sold.
The 42-day festival season, when seen in totality, saw a 20.21 percent spike on a year-on -year comparison and saw sales of 28,88,131 vehicles compared to 22,42,139 vehicles in the same period last year. Even compared to the 2019 festive season, FADA clocked a jump of nearly 6 percent from 27,29,338 vehicles sold in 2019 during the same festive season.
The most striking aspect is however the pick-up in two-wheeler sales. According to FADA, two-wheeler sales jumped 51 percent year-on-year and even compared to October 2019, there is a 5.79 percent uptick. In the festive period too, two-wheeler sales saw a robust 26 percent uptick year-on-year.
Dealers say that sentiment has started improving at the rural level but the same needs to sustain for at least next 3-4 months for meaningful growth. Apart from this, new launches and good customer schemes also played a pivotal role in helping revival in demand in the two-wheeler segment.
Passenger vehicles too have seen a steady growth in retails. October sales are up 40 percent Year-on-year to 3,28,645 vehicles from 2,33,822 vehicles sold last October. Compared to October 2019 as well, there is a 17 percent jump to 2,78,867 vehicles. PVs also saw a similar jump in the festive season sale compared to 2019. On a year-on-year comparison, PV sales are up well over 30 percent compared to vehicles sold last year in the same period.
The CV segment continues to come back on track by growing 25 percent year-on-year and 13 percent compared to 2019. Festivities ignited better fleet sales. With mining and infrastructure projects increasing in various regions, demand has continued to be steady.
The three-wheelers meanwhile clocked massive sales but what’s clearly evident is that the shift to EVs have gained momentum more than ever in this space.
Commenting on how October 2022 and the festive period panned out, FADA President, Manish Raj Singhania said, “Auto retail saw an overall growth of 48 percent. With most of the month under festive period, the sentiments were extremely positive across all categories of dealership outlets.”
However, FADA hence remains cautious as the auto industry approaches the year end period. Their near-term outlook highlights how the immediate next month, after the festive season, generally witnesses a certain amount of softness in sales.
As OEMs and vehicles start transitioning to OBD-II norms vehicles II, FADA anticipates a steep price increase across all categories of vehicles . Also with year-end coming close, many customers wait for vehicles manufactured in the new year. This may impact overall demand too.