October auto sales: Car sales witness significant growth of 32% on-year; PV sales grow 32% on-year

October saw a significant growth in vehicle sales across all the categories. The festive season, including Diwali and Dussehra, as well as recovery from September’s slowdown due to rains,  stimulated demand, said Federation of Automobile Dealers Associations (FADA). 

According to FADA, all categories – two wheelers 36 per cent, three-wheelers 11 per cent, passenger vehicles 32 per cent, tractors 3 per cent, and commercial vehicles 6 per cent – saw growth. It added that the rural market played a pivotal role in boosting two-wheelers and passenger vehicle sales, supported by the increased Minimum Support Price (MSP) for Rabi crops. 

Passenger vehicle sales grew by 32 per cent on-year and 75 per cent month-on-month, driven by festive demand, aggressive offers and new model introductions. “SUV demand remained strong, but dealer inventories remained high at 75–80 days, raising concerns about continued discounting through the year-end,” said FADA.

Two-wheelers registered a growth of 36 per cent on-year and a month-on-month growth of 71 per cent owing to the festive season. Attractive festive offers, new model launches and improved stock availability drove the strong performance of two-wheelers, added FADA. Rural sentiments, favourable monsoon and good crop expectations also played a part. 

However, despite a growth of 6 per cent on year, challenges such as sluggish construction activities and increased vehicle prices affected overall growth for the commercial vehicle category.

FADA President C S Vigneshwar said, “October 2024 witnessed the convergence of two major festivals, Navratri and Diwali, both occurring in the same month. These festivities traditionally account for 30–35 per cent of total annual auto sales, so the industry's focus was keenly on how October would unfold. With dealers entering this crucial period fully committed and carrying all-time high inventory levels, the month did not disappoint!” 

The Indian auto is poised for a robust performance at the end of the year. “With an estimated 4.8 million weddings scheduled nationwide in November and December 2024, Indian retail is preparing for an unprecedented surge in demand for wedding-related goods and services. Vehicle purchases also traditionally witness an uptick during the wedding season, and FADA anticipates that this will translate into strong sales in both, the 2W and PV segments in the near term,” stated FADA.

The association said the industry is optimistic about near-term growth driven by favourable market conditions and wedding season demand, even as potential challenges could affect sales momentum.