Record-breaking vehicle sales during 42-day festive period: FADA

The Federation of Automobile Dealers Associations (FADA) has released the Vehicle Retail Data for the 42-day festive period, showcasing an impressive surge in vehicle sales.

During the 42-day festive period of FY2023, spanning from the first day of Navratri to 15 days post Dhanteras, FADA reported a significant milestone with vehicle sales reaching 37.93 lakh. This marks a substantial 19% increase from the previous year’s 31.95 lakh.

Commenting on the Festive Period Retails, FADA President, Manish Raj Singhania, highlighted the remarkable growth in various vehicle segments. Two-wheelers, three-wheelers, commercial vehicles, and passenger vehicles witnessed respective rises of 21%, 41%, 8%, and 10%. In contrast, the tractor segment experienced a slight decline of 0.5%.

Record-breaking sales were particularly noted in several categories, with rural areas playing a pivotal role in driving the surge in two-wheeler purchases. Despite a slow start during Navratri, especially in the passenger vehicle sector, the situation improved significantly by Deepawali, concluding with a notable 10% growth rate.

While SUVs dominated the demand charts, concerns over inventory levels in the passenger vehicle category persist. Original Equipment Manufacturers (OEMs) continue to push for more dispatches, maintaining inventory rates near all-time high levels.

Tractors, initially facing an 8.3% decrease in sales during Navratri, made a remarkable recovery, ending the festive period with only a 0.5% decrease. This turnaround underlines the robust purchasing power in rural India.

Vehicle Retail Data Highlights

The following data provides a breakdown of the vehicle retail figures for the 42-day festive period:

Source: FADA Research

This robust performance during the festive period signals positive momentum in India’s automotive sector, reflecting the resilience and adaptability of the industry amid changing economic landscapes.