FADA November auto sales: While November was expected to build on the prior momentum, it saw a mixed response across segments. Passenger and commercial vehicle sales saw a dip year-on-year in the month of November, said Federation of Automobile Dealers Associations (FADA) on Monday.
According to FADA, PV sales saw a decline of 13.72 per cent on-year, and commercial vehicle sales dipped 6.08 per cent on year. However, two-wheelers, three-wheelers and tractors saw a hike in sales of 15.8 per cent, 4.23 per cent, and 29.88 per cent respectively on-year.
According to FADA President CS Vigneshwar, “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. The late occurrence of Deepawali at the end of October also caused a spill over of festive registrations into November, affecting the month’s sales trajectory.”
Month-on-month performances also revealed uneven results with two-wheeler retail sales growing by 26.67 per cent but passenger and commercial vehicle segments contracting by 33.37 per cent and 15.85 per cent respectively.
Vigneshwar said that the PV segment faced notable headwinds with weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October.
“Although rural interest was present, it failed to significantly improve sentiment. Inventory levels have reduced by about 10 days, but to remain high at around 65-68 days,” the FADA President said.
The CV segment also faced challenges including restricted product choices, older model issues, limited financier support, and the absence of major festivals in November. “External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category,” he said.
When it comes to near-term outlook, the two-wheeler segment is on a cautiously positive footing, although the sales momentum might not be robust. According to FADA, there is a sense of cautious optimism for the PV segment “with a moderate chance of improved sales compared to November”. The CV segment’s “expectations are not uniformly positive”, stated FADA, adding that a sharper decline could be prevented due to targeted incentives and stable financing conditions.