India (Commonwealth) _November saw a spike in car sales that broke the March 2020 record with 28.54 lakh vehicles sold.According to figures released by the Federation of Automobile Dealers Associations (Fada), monthly retail car sales reached a record high in November 2023 with 28.54 lakh vehicles seeking consumers, exceeding the previous record high of 25.69 lakh units in March 2020. This was due to strong demand throughout the Christmas season.
While two-wheeler retail sales increased by 21% to reach a new milestone of 22.47 lakh units, passenger vehicle (PV) sales increased 17.19% year over year to surpass 3.57 lakh automobiles sold in October 2022 in November.
Thanks to booming agricultural revenue and the festive spirit of Deepawali, the 2W category experienced an increase in car retail this month, setting new records. Strong rural sentiments also contributed to this success. Manish Raj Singhania, president of the FADA, stated that the surge in electric vehicle sales was driven by new product introductions and improved model supply.
Regarding PV sales, he claimed that Deepawali and the introduction of fresh, eye-catching models had fueled demand. He said, “The peak in sales was marked by the enhanced supply chains in conjunction with new launches that catered to the festive demand.” Although Fada anticipates that the 2W sales trend will continue, the PV market’s immediate future is bleak.
After the celebrations, there was a discernible slowdown, along with the pressing issue of inventory that moved slowly because of a mismatch between supply and demand, which is still unresolved.
According to Singhania, this problem throws a shadow over the otherwise encouraging developments and emphasizes the necessity for tactical changes in inventory management.According to Fada, the 2W category is predicted to profit in the near future from an increase in liquidity, primarily in agricultural regions and the upcoming marriage season, which is expected to stimulate sales with over 38 lakh nuptials.
Sales of two-wheelers reached an all-time high of 22.47 lakh units, surpassing the 20.7 lakh units recorded in March 2020. Sales of passenger vehicles surpassed the previous record of 3.57 lakh units, with 3.6 lakh sold. Sales of commercial vehicles and tractors decreased by 2% and 21%, respectively. YoY growth rates for two-wheelers, three-wheelers, and PVs were 21%, 23%, and 17%, respectively.
Monthly growth for the two-wheeler category was 49%, while passenger car growth was 2%. Every month, the industry as a whole saw growth of 35%.
According to statistics, every category of cars experienced growth in November. The growth rates for 2-wheelers, 3-wheelers, tractors, passenger vehicles (PVs), and commercial vehicles (CVs) were 24%, 80%, 21%, 57%, and 33%, respectively.
With March 2020 serving as an outlier, when retails were higher because of BS-4, November 2022 has recorded the highest retails in the history of the Indian vehicle industry.
According to Manish Raj Singhania, President of FADA, November 2022 had the greatest retail sales in the history of the Indian auto industry, with the exception of March 2020, when sales were greater because of the switch from BS-4 to BS-6.
According to Singhania, the positive run of seasonal sales has handed the torch to the Great Indian Wedding Season, which runs from November 14 to December 14. During this time, almost 32 lakh marriages will be celebrated nationwide.For the second consecutive month, overall retail sales in all categories—aside from 2-wheelers—saw a positive increase when compared to the pre-Covid period of November 2019.
The 2W category saw a remarkable YoY gain of 24%, while a slight decline of 0.9% was seen in comparison to November 2019, a pre-covid year. Because of the ongoing wedding season, this category is gradually reversing the tide from negative to positive, according to Singhania. This is evident in retail sales as well.At the end of November, the average PV inventory was between 35 and 40 days, while the average 2-wheeler inventory was between 30 and 35 days.
