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Informist, Monday, Dec. 9, 2024

 

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--FADA: Nov passenger vehicle retail sales 321,943 units, dn 13.7% on year 
--FADA Nov 2-wheeler retail sales 2.62 mln units, up 15.8% on year 
--FADA Nov CV retail sales 81,967 units, dn 6% on year 
--FADA Nov tractors retail sales 80,519 units, up 30% on year 
--FADA Nov 3-wheeler retail sales 108,337 units, up 4% on year 
--FADA: Nov total vehicle sales 3.21 mln units, up 11.2% on year 
--FADA: Nov 2-wheeler retail sales up 26.7% vs Oct 
--FADA: Nov passenger vehicles retail sales down 33.4% vs Oct 
--FADA: Nov commercial vehicles retail sales down 15.9% vs Oct 
--FADA:Rural demand lifted 2-wheeler Nov sales, did not work for PVs, CVs 
--FADA: Passenger vehicles stock level still high at 65-68 days 
--FADA: 41?alers expect Dec auto sales to be flat 
--FADA: 39?alers expect Dec auto sales up, 20?alers see Dec sales down 

 

MUMBAI – Overall automobile retail sales in India rose 11.2% on year to 3.21 million units in November. According to the Federation of Automobile Dealers Associations, the fact that Diwali was in late October this year meant some festival registration spilling over to November. While this slightly boosted overall sales numbers, it could not sufficiently offset weak demand during the marriage season. During the month, rural markets offered some support, though this was primarily in the two-wheeler category.

 

In November, sales of two-wheelers, three-wheelers and tractors rose on year, while volumes in other categories such as passenger vehicles, and commercial vehicles fell. Even the month-on-month comparisons reflected a mixed performance, with two-wheeler and tractor retail sales up, but those of three-wheelers, and passenger and commercial vehicles down. 

 

"While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations. Although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued," C.S. Vigneshwar, president of FADA, was quoted as saying in a press release.

 

In November, two-wheeler retail sales rose 15.8% on year and 26.7% on month to 2.62 million units. Despite subdued marriage season sales, the spillover of festive buying from October helped two-wheeler registrations reach an all-time high for November. Two-wheeler sales accounted for around 80% of total vehicle sales in November.

 

In the passenger vehicles category, retail sales fell 13.7% on year and 33.4% sequentially to 321,943 units. Dealers cited weak market sentiment, limited product variety, and insufficient new launches, compounded by the shift of festival demand into October, as the factors that impacted sales.

 

The overall passenger vehicle inventory has been reduced by about 10 days, but it remains high at around 65–68 days. FADA has urged vehicle manufacturers to further rationalise inventory so that the industry can enter the new year on a healthier footing, reducing the need for additional discounts, Vigneshwar said.

 

In November, retail sales of commercial vehicles fell 6% on year and 15.9% sequentially to 81,967 units. Most sub-categories, including light, medium and heavy commercial vehicles, saw a decline in sales on year and sequentially. "Restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October (affected commercial vehicle sales). External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category," Vigneshwar said. 

 

Retail sales of three-wheelers rose 4.2% on year but fell 11.8% on month to 108,337 units in November. Sales of electric rickshaws, used for ferrying passengers, fell 3.2% on year and 8.2% sequentially to 40,391 units, while those of internal combustion engine variants rose 6.3% on year, but were down 14.5% on month at 51,466 units. In November, sales of tractors rose the most, by 30% on year and 25% sequentially to 80,519 units.

 

On the near-term outlook for retail sales of vehicles in India, the association said that with prospects of a bumper kharif harvest likely to temper food inflation, the broader macroeconomic environment appears set to improve, potentially aiding consumer sentiment in the months ahead. However, the immediate outlook for December derived from dealer feedback was mixed, with around 40.5% of dealers anticipating flat sales, 39.2% expecting growth, and 20.3% foreseeing contraction.

 

On passenger vehicle sales, the association said heavy discounting and improved product availability were expected to help offset weak consumer sentiment and a general year-end lull. While some customers may defer purchases for new-year models, overall interest could pick up due to aggressive offers and end-of-year promotions.

 

In terms of two-wheeler sales, the association said that although the momentum might not be robust, incremental schemes and easing inflation could lend mild support, placing the segment on a cautiously positive footing. By comparison, the commercial vehicle category faces a more challenging environment. Factors such as subdued infrastructure activity and customers holding back for newer model-year vehicles continue to dampen demand, FADA said.  End

 

Reported by Darshan Nakhwa 

Edited by Avishek Dutta

 

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