Auto sales up 48% on-year in October; passenger vehicle sales grew 41%: FADA

The Federation of Automobile Dealers Associations (FADA) released its monthly vehicle sales data for October. It stated that vehicle sales for the month of October grew 48 per cent year-on-year with two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicle categories growing 51 per cent, 66 per cent, 41 per cent, 17 per cent and 28 per cent respectively. 

With all the categories in green, FADA stated that the 2022 festive season turned out to be the best in the last four years. During the 42 days of festive period, total vehicle sales went up 28 per cent year-on-year, with all the categories including two-wheelers (26 per cent), three-wheelers (66 per cent), passenger vehicles (28 per cent), tractors (33 per cent) and commercial vehicles (28 per cent) seeing a significant uptick. 

FADA President Manish Raj Singhania said, “Auto Retail for the month of October’22 saw an overall growth of 48 per cent. With most of the month under festive period, the sentiments were extremely positive across all categories of dealership outlets. Even when compared to pre-Covid month of 2019, overall retails for the first time closed in green by growing 8 per cent. Except 3W, which saw a marginal dip of -0.6 per cent all the other categories like 2W, PV, Trac and CV grew by 6 per cent, 18 per cent, 47 per cent and 13 per cent respectively.”

He said that the festive season brought cheer to the auto industry as customers of every category came out in good numbers to take part in festive purchases. The PV segment saw its best year in a decade by outgrowing 2020 numbers by 2 per cent. In comparison to pre-Covid festive season of 2019, overall retail went up by 6 per cent, with all the categories in green. 

The two-wheeler segment saw a growth of 51 per cent on-year, and 6 per cent compared to pre-Covid October 2019. “With both Navratri and Deepawali majorly falling in a single month, the month of October saw double foot fall at dealerships. Dealers say that sentiments have also started improving at the rural level but the same needs to sustain for at least next 3-4 months. Apart from this, new launches and good customer schemes also played a pivotal role in helping revival in demand,” stated Singhania. 

The report stated that the three-wheeler segment showed a massive growth of 66 per cent on-year, with a shift happening towards EV. New vehicles have taken a hit in a few pockets due to permit issues. 

With extremely high demand, especially in the SUV and Compact SUV segments, the passenger vehicle category saw a growth of 41 per cent and 18 per cent when compared to 2019. PVs also saw the best festive period in a decade by surpassing 2020 festival sales by 2 per cent. 

The CV segment is back on track with 25 per cent on-year growth and 13 per cent growth compared to 2019. 

FADA stated that as festivities end, there will be a softness in the number of sales. Overall sentiments show headwinds especially in the two-wheeler rural segment. It added that for auto sales to show strength, the two-wheeler segment will have to continue its growth for at least 3-4 months over the pre-Covid period. 

CV category is expected to continue growth but the entry level segment in PVs continue to show softness. 

“Most of the OEMs will now start migrating towards manufacturing OBD-2 norms vehicles. This will definitely see a steep price increase across all categories of vehicles as and when they hit the market,” stated FADA, adding that most people will now wait for the next year to purchase vehicles in the new year. 

Also read: Auto sales in Navratri saw 57% on-year jump over last season: FADA

Also read: Vehicle retail up 10.94%; PV sales grew 9.71% on-year in Sept: FADA