‘Remarkable surge’: 42-day festive period witnesses 11.76% growth in auto sales

The 42-day festive period this year achieved a new milestone, surpassing the figures from last year, said Federation of Automobile Dealers Associations (FADA) President CS Vigneshwar. The FADA President said that the festive period saw a growth of 11.76 per cent over the previous year. 

The period – from the first day of Navratri to 15 days after Dhanteras – the automobile retail sector surpassed last year’s festive records. “We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with 42.88 lakh vehicles registered during this period – a growth of 11.76 per cent over last year's 38.37 lakh units,” said Vigneshwar. 

According to FADA, the passenger vehicle category saw a growth of 7.10 per cent from 5,63,059 units in the festive period last year to 6,03,009 units in the festive period this year.

The two-wheeler category registered a growth of 13.79 per cent at 33,11,325 units, up from the year-ago period’s 29,10,141 units. The three-wheeler category registered a growth of 6.81 per cent from 1,49,764 units last year to 1,59,960 units this festive season. 

Commercial vehicles saw a growth of 1.02 per cent from 1,27,436 units the previous year to 1,28,738 units this year. Tractors is the only category that witnessed a decline of 1.64 per cent to 85,216 units from 86,640 units this festive season. 

“While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha,” said Vigneshwar. 

Passenger vehicle stock levels will reduce further from October retail data. “However, FADA advises caution as the complete picture on inventory will emerge by month-end. With 1.5 months remaining before the calendar year ends, FADA urges OEMs to focus on liquidating 2024 stock so that Dealers can enter 2025 with ideal FADA-recommended 21 days of inventory,” said the association. 

The auto industry will benefit from a government push in infrastructure spending, which is expected to bolster commercial vehicle sales. “Additionally, tractors should perform better,

supported by good rainfall and the government's increase in the Minimum Support Price (MSP) of crops, putting more money into farmers' hands,” it said.