India’s auto sales jump 20% in September, 2-wheelers’ new feat shows turnaround for rural markets
India’s overall auto sales in September jumped 20% from a year earlier and also clinched new feats for two-wheeler, 2W, and three-wheeler, 3W, categories ahead of the likely festive boom.
“September’s Auto Retail celebrated a 20% YoY leap, continuing the momentum from the previous month while marking a 3.5% MoM increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days,” said FADA President Manish Raj Singhania.
The uptick was consistent for almost all vehicle categories, with 2W seeing a 22 per cent increase, PV at 19 per cent, 3W jumping 49 per cent and CV up by 5 per cent. However, tractors sales in September dipped 10 per cent.
The 3W sector continued to build on its strong performance, achieving consecutive record-breaking retail sales. In September, 3W sales were at an all-time high of 102,426 units, a 49% year-over-year and a 5% month-over-month growth, breaching the milestone of 100,000 units.
Compared to the pre-COVID benchmarks, auto sales rose 14% and the 2W category showed 2% growth for the first time, potentially marking the beginning of a turnaround in rural markets.
“The 2W segment witnessed positive shifts as the festive season approaches. With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments,” FADA said.
The higher demand also came on the back of an increase in customer foot traffic and a generally favorable response from the market. Also, improved stock availability compared to the previous year and a positive reception to recently introduced entry-level products created an optimistic outlook for the upcoming festive season.
“As the festive season unfolds, a wave of anticipation and enthusiasm is expected to sweep across the automotive sector. In the 2W segment, although the initial half of the month might be quiet due to the Shraddh period, the aura of upcoming festivals like Durga Puja and Navratri is predicted to brighten the sales atmosphere, with enhanced customer sentiment and competitive pricing playing pivotal roles. The introduction of new models will further add to the optimism,” FADA said.
Inventory levels for passenger vehicles (PVs) have reached an all-time high, hitting the 60-65 days threshold, as dealers prepare for a robust 42-day festive period ahead, according to the data.
As inventory levels for passenger vehicles (PVs) have reached an unprecedented 60-65 days threshold, it becomes crucial for OEMs to exercise caution, avoiding excessive inventory buildup, FADA said. This approach ensures a vibrant and stable market during the upcoming festive season. The favorable monsoon patterns, with India receiving 94% of expected rainfall, provide a positive backdrop for the festive season. As we transition beyond the Shraadh period on October 14th, the market is primed for the commencement of Navratri, signaling the start of a 42-day festive window. With these promising indicators, FADA takes an optimistic stance, foreseeing a thriving festive season ahead for the Indian Auto Retail sector, FADA added.