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Informist, Monday, Nov. 18, 2024
 
MUMBAI - Automobile retail sales jumped 11.8% on year to 4.3 million units during the 42-day festival period of 2024-25 (Apr-Mar), the Federation of Automobile Dealers Associations said on Friday. Sales of two-wheelers saw a significant increase, rising by 13.8% on year to reach 3.3 million units, largely due to strong demand from rural areas. Meanwhile, passenger vehicle sales rebounded after a period of stagnation, growing by 7.10% to 603,009 units, spurred by pent-up demand and attractive discounts in the market.

 

Commenting on the 42-day festive period (from 1st day of Navratri to 15 days post Dhanteras) retails, FADA President, C.S. Vigneshwar said, "We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with 4.3 million vehicles registered during this period—a growth of 11.76% over last year's 3.8 million units".

 

According to FADA, sales of three-wheelers and commercial vehicles experienced notable increases, with three-wheelers rising by 6.8% to reach 159,960 units and commercial vehicles growing by 1.02% to 128,738 units. The tractor segment saw a slight decline of 1.64%, totalling 85,216 units.

 

Looking ahead, the auto industry is yet to fully benefit from a government push in infrastructure spending, which we expect will bolster commercial vehicle sales. Additionally, tractors should perform better, supported by good rainfall and the government's increase in the minimum support price of crops, putting more money into farmers' hands, Vigneshwar added.

 

"While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 4.5 million units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha", the association said in its report.

 

As the festivities wrap up, FADA expects a continued decline in passenger vehicle stock levels beyond what was reported in its October retail data press release. However, FADA urges caution, noting that a clearer understanding of inventory levels will become available by the end of the month.

 

With 1.5 months remaining before the calendar year ends, FADA urges original equipment manufacturers to focus on liquidating 2024 stock so that dealers can enter 2025 with the ideal FADA-recommended 21 days of inventory, the report added.  End

Reported by Nivedita Yadav
Edited by Deepshikha Bhardwaj

 

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