Sept auto sales mark 20% growth, PVs grow at 19%; vibrant festive season expected: FADA

September saw a robust growth in auto sales at 20 per cent. All the categories witnessed a growth, except for tractors, said the latest Federation of Automobile Dealers Associations (FADA) report. Tractors saw a de-growth of 10 per cent, it said, while all the other categories registered a jump.

As per FADA data, two-wheelers increased 22 per cent, while three-wheelers increased 49 per cent, passenger vehicles grew 19 per cent and commercial vehicles grew 5 per cent.

When it comes to month-on-month sales, the auto industry saw a growth of 3.5 per cent in overall sales. The tractor segment fell with a contraction of 26 per cent here too.

Compared to the pre-pandemic period, the overall retail sales saw an increase of 14 per cent growth, which signalled healthy recovery in the industry.

Inventory for passenger vehicles has reached the 60-65 days threshold as dealers anticipate a bumper 42-days festive period. “The PV category experienced a stimulating resurgence as the market enjoyed improved vehicle availability and an influx of new and refreshed models from various OEMs. This uplift was supported by enhanced supplies and an increasing variety in the product portfolio, answering to a diversifying consumer demand. The market showed consistent demand for luxury cars and SUVs, signifying a robust consumer appetite for premium segments. The segment also witnessed the benefit of good pending bookings and the launch of promising products, laying the groundwork for potential growth in the upcoming festive season,” said FADA President Manish Raj Singhania.

Maruti Suzuki led the segment with sales of 1,39,640 passenger vehicles, followed by Hyundai with 49,625 and Tata Motors with 38,984 PVs.

The two-wheeler category grew 2 per cent for the first time, indicating a turnaround in the rural markets as well as positive shifts ahead of the festive season. “Additionally, better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season,” said Singhania.

Hero Motocorp topped the segment with sales of 3,51,781 two-wheelers, followed by Honda Motorcycle and Scooter with 3,48,899 units and TVS Motor Company with 2,28,852 two-wheelers.

The three-wheeler segment continued its momentum and set an all-time high retail record for the consecutive time. Three-wheeler sales in September peaked at 1,02,426 units, marking a staggering growth of 49 per cent on-year and 5 per cent on-month.

Bajaj Auto, Piaggio and Mahindra and Mahindra were the top three sellers with sales of 35,639, 7,550 and 5804 three-wheeler units respectively.

The monsoon prediction and the festive season is expected to boost sales further. The IMD has predicted ‘normal’ north-east monsoon for the October to December period. Moreover the Navratri + Diwali period of 42 days of festive season is expected to bump sales up. The federation stated that it has shifted its stance from ‘cautiously optimistic’ to ‘optimistic’ and is anticipating a vibrant festive season for auto sales due to the approaching festive period.

“The favourable monsoon patterns, with India receiving 94 per cent of expected rainfall, set a positive backdrop for the festive season. As we move past the Shraadh period on October 14th, the market is poised for the onset of Navratri, heralding a 42-day festive window,” said FADA.

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