Pointing in the direction of the financial progress push, vehicle retail gross sales in India rose to a report excessive in November, aided by the most effective-ever month-to-month efficiency throughout passenger automobile and two-wheeler segments, sellers’ physique FADA mentioned on Wednesday. The general retail gross sales stood at 28,54,242 items final month, 18 per cent increased over 24,09,535 items in November 2022.
Passenger automobile (PV) retail gross sales rose to 3,60,431 items as in contrast to 3,07,550 items in the 12 months-in the past interval, registering a progress of 17 per cent. Similarly, two-wheeler registrations rose by 21 per cent final month to 22,47,366 items from 18,56,108 items in November final 12 months.
“November ’23 has become a historic month for the Indian auto retail industry as 28.54 lakh vehicles were sold, thus overtaking the previous high of March ’20 when the industry sold 25.69 lakh vehicles,” Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania mentioned in an announcement. Two-wheeler and passenger automobile segments created new information final month, he added.
The two-wheeler phase noticed gross sales of twenty-two.47 lakh autos, a rise of 1.77 lakh autos in contrast to the earlier excessive of March 2020, whereas the passenger automobile class additionally offered 3.6 lakh items, over 4,000 items extra compared to the earlier excessive of October 2022, Singhania mentioned. He famous that PV gross sales final month had been fuelled by Deepawali and the launch of latest and interesting fashions.
The improved provide chains, coupled with new launches, successfully catered to the festive demand, marking the height level in gross sales, Singhania mentioned. However, the interval following the festivities noticed a noticeable slowdown, coupled with a important problem of gradual-transferring stock due to a mismatch in demand and provide, which remains to be not resolved, he added.
“This issue casts a shadow over the otherwise positive trends, highlighting the need for strategic adjustments in inventory management,” Singhania mentioned. Two-wheeler gross sales had been aided by enhanced demand in rural areas, new product launches, and higher mannequin provide, he added.
Three-wheeler retail gross sales rose to 99,890 items final month, registering a progress of 23 per cent from November 2022. Tractor gross sales, nevertheless, witnessed a decline of 21 per cent to 61,969 items in November from 78,720 items in the 12 months-in the past interval.
Similarly, industrial automobile retail gross sales witnessed a dip of two per cent 12 months-on-12 months at 84,586 items final month. “The seasonal slump, exacerbated by unseasonal rains damaging crops and impacting transport demand, coupled with liquidity issues and delayed deliveries, further strained the industry,” Singhania mentioned. Elaborating on the gross sales outlook, FADA famous that in the close to time period, the 2-wheeler class is poised to profit from a liquidity enhance, notably in rural areas and in the course of the ongoing marriage season, with round 38 lakh marriages anticipated to drive automobile gross sales. However, challenges persist as extreme climate circumstances impacting rabi cultivation would possibly have an effect on rural incomes, probably dampening gross sales, it added.
In distinction, the Commercial Vehicle (CV) class is predicted to see some restoration, pushed by renewed enterprise actions put up-elections and constructive actions in key sectors like cement and coal, FADA mentioned. The PV sector exhibits potential for progress, with 12 months-finish gives and reductions anticipated to stimulate gross sales, together with improved automobile provide and new product launches, it famous.
“The current PV inventory, still above 60 days, underscores the need for Original Equipment Manufacturers (OEMs) to strategically reduce dispatches of slow-moving vehicles, especially in the entry-level category. Historically, it is recognised that holding inventory beyond 30 days starts to erode dealer profitability as the financial burden is intensified by the high interest costs of inventory funding from financial institutions,” the business physique acknowledged.
FADA represents over 15,000 vehicle dealerships with over 30,000 shops throughout the nation. FADA mentioned it collated the registration information from 1,355 out of 1,442 regional transport places of work (RTOs) throughout India.
India retained the tag of the world’s quickest-rising main economic system, with its GDP increasing by a sooner-than-anticipated price of seven.6 per cent in the July-September quarter on booster pictures from authorities spending and manufacturing.
(With PTI Inputs)
