Auto retail sales rise by 11.21 % in November driven by two-wheeler demand: FADA

NEW DELHI: Retail vehicle sales in November recorded a rise of 11.21 per cent, majorly due to strong demand for two-wheelers, according to the Federation of Automobile Dealers Associations (FADA). Sales totaled 3,208,719 units, compared to 2,885,317 units during the same month last year.
Two-wheeler retail sales reached 2,615,953 units in November 2024, up from 2,258,970 units in November 2023, marking a growth of 15.8 per cent. This increase was driven by sustained demand following the festive season.
However, passenger vehicle retail sales declined by 13.72 per cent, falling to 321,943 units due to significant challenges, according to FADA.
“While November was initially expected to build on prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations,” CS Vigneshwar, FADA president, told PTI.
He also told that although rural markets provided some support, particularly in the two-wheeler category, marriage-related sales remained limited.
“Inventory levels have reduced by about 10 days but remain high at around 65-68 days,” he said.
Vigneshwar also highlighted that the late timing of Diwali, which fell at the end of October, caused a spillover of festive registrations into November, influencing the month’s sales trends.
“Dealers cited weak market sentiment, limited product variety, and insufficient new launches, compounded by the shift of festive demand into October,” said Vigneshwar.
He reiterated FADA’s call for original equipment manufacturers (OEMs) to better manage inventory, ensuring the industry starts the new year on a stronger note while reducing reliance on additional discounts.
FADA reported a 6.08 per cent decline in commercial vehicle sales last month, with 81,967 units sold compared to 87,272 units in November 2023.
Commercial vehicle sales were impacted by factors such as limited product options, issues with older models, reduced financier support, and the absence of major festivals in November following a strong October, Vigneshwar said.
“External elements such as elections, a slowdown in the coal and cement industries, and weak market sentiment also weighed heavily on this category,” he added.
Three-wheeler sales in November reached 108,337 units, marking an increase of 4.23 per cent compared to 103,939 units in the same month last year.
Regarding the overall near-term outlook, FADA stated: “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 overall remains cautiously optimistic.”
The outlook for the broader macroeconomic environment appears positive, with a plentiful Kharif harvest expected to ease food inflation and potentially improve consumer sentiment in the months ahead. However, the December outlook, based on dealer feedback, remains mixed, the report added.