New Delhi: Domestic auto sales soared 18% year-on-year during Navratri this year following muted retail in the beginning of October due to inauspicious Shraddh period, as per data published by Federation of Automobile Dealers Associations (FADA) on Monday.
Dealers across the country sold 7,59,281 vehicles during Navratri this year as against 6,44,023 units in Navratri 2022.
"Navratri 2023 brought unprecedented sales to auto retail, surpassing the previous high of Navratri 2017. YoY figures for this period show a robust 18% increase in overall auto retail," the trade body said.
During the 10 days of Navratri, all categories except tractors saw gains. Two-wheelers (2W), three-wheelers (3W), commercial vehicles (CV) and passenger vehicles (PV) grew by 22%, 43%, 9% and 6.5%, respectively, while tractors faced an 8% decline.
The dealers' association said that in the first half of October, domestic auto sales dipped 8% year-on-year (YoY). However, a month-on-month (MoM) comparison reveals a 13% surge, indicative of resilient market demand.
"The month commenced under the shadow of the inauspicious Shraddh period, persisting until the 14th. Consequently, a YoY comparison may not accurately reflect the actual trajectory of growth in the Indian auto retail sector," FADA President Manish Raj Singhania said.
The dealers' body, however, flagged critical inventory concerns in the passenger vehicle (PV) segment.
"With passenger vehicle inventory levels soaring to an all-time high of 63-66 days, dealerships are signalling capacity concerns. FADA has issued a red flag, urging OEMs to not only moderate vehicle dispatches but also to introduce more aggressive and attractive schemes promptly. This dual approach is essential to help dealers clear their inventory before year-end, averting the potential financial repercussions associated with excess unsold stock," it said.
On the near-term outlook for the auto sector, the trade body said that festivities along with harvest season (especially paddy) are expected to boost 2W sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns.
"CV’s are looking at a strong November, with festive and construction activities enhancing demand, alongside anticipated financial schemes," it said.
All India auto retail data showed total sales of 21,17,596 in the month of October 2023, down 7.73% year-on-year. (UNI)
