Economy - Reports
India's auto retails sees mixed performance across segments As on : 09-Dec-24  10:26

The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for November'24.

There was a mixed performance across segments. While Two-Wheelers (2W), Three-Wheelers (3W), and Tractors (Trac) posted Year-over-Year (Y-o-Y) growth of 15.8%, 4.23%, and 29.88% respectively, Passenger Vehicles (PV) and Commercial Vehicles (CV) experienced Y-o-Y declines of 13.72% and 6.08%.

Month-over-Month (M-o-M) comparisons also reflected uneven results, with 2W retail sales growing by 26.67%, but PV and CV segments contracting by 33.37% and 15.85%, respectively.

The late timing of Diwali in October led to festive registrations spilling over into November, slightly boosting numbers but not sufficiently offsetting weaker marriage season demand.

Rural demand offered limited support, particularly in the 2W segment, but failed to provide a substantial lift for PV and CV categories.

Despite subdued marriage season sales, the spill over of festive buying from October helped 2W registrations reach an all-time November high, surpassing even November'23 levels. Rural demand and year-end offers may lend further support, albeit without a major upward surge.

Weak market sentiment, limited new launches and the early festive push in October dampened November's PVs performance. Despite inventory correction (down by around 10 days), stock levels continue to remain high at 65'68 days. FADA continues to urge PV OEMs to rationalize supply to ensure a healthier inventory position entering the new year.

CV dealers cited restricted product choices, older model issues, insufficient financier support and the absence of major festivals in November. External factors such as elections, weak construction activity, and subdued coal and cement industries further impacted sentiment.

With prospects of a bumper Kharif harvest likely to temper food inflation, the broader macroeconomic environment appears set to improve, potentially aiding consumer sentiment in the months ahead. However, the immediate December outlook derived from dealer feedback is mixed.

While the near-term outlook for December is not overwhelmingly strong across segments, it leans towards stability with pockets of potential growth, underlining a sentiment that remains overall remains cautiously optimistic.

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