India’s auto retail sector showed a mixed performance across segments in November 2024, according to FADA’s latest report. Year-over-Year (Y-o-Y) sales rose for Two-Wheelers (2W), Three-Wheelers (3W), and Tractors (Trac), with growth rates of 15.8%, 4.23%, and 29.88%, respectively. However, Passenger Vehicles (PV) and Commercial Vehicles (CV) faced Y-o-Y declines of 13.72% and 6.08%.
Month-over-Month (M-o-M) comparisons also reflected mixed results. While 2W sales surged by 26.67%, PV and CV segments contracted by 33.37% and 15.85%, respectively.
The late timing of Diwali in October caused some festive registrations to spill into November, offering a temporary boost. However, this was insufficient to counterbalance weaker demand during the marriage season.
Rural demand provided limited support, especially for 2Ws, but failed to significantly lift PV and CV sales. Despite the subdued marriage season, festive spillover helped 2W registrations hit a record high for November, surpassing November 2023 levels. Year-end offers and ongoing rural demand could provide additional support, though a major surge appears unlikely.
Weak market sentiment, limited new launches, and an early festive push in October weighed on November’s Passenger Vehicle (PV) performance. Despite a 10-day inventory correction, stock levels remain high at 65-68 days. FADA continues to urge PV OEMs to align supply with demand for healthier inventory management entering the new year.
Commercial Vehicle (CV) dealers faced challenges including restricted product options, outdated models, limited financier support, and the absence of major festivals in November. External factors such as elections, sluggish construction activity, and a subdued coal and cement industry further dampened market sentiment.
Looking ahead, a potential bumper Kharif harvest could ease food inflation, improving the broader macroeconomic environment and boosting consumer confidence. However, dealer
“November was expected to maintain its previous momentum, especially with the marriage season, but dealer feedback indicates the segment fell short of expectations. While rural markets provided some support, particularly in the two-wheeler category, marriage-related sales remained muted. The late timing of Deepawali in late October also led to a spillover of festive registrations into November, impacting the month’s overall sales performance,” said CS Vigneshwar, President, FADA.
“In the PV segment, heavy discounts and better product availability are likely to counter weak consumer sentiment and the typical year-end slowdown. While some buyers are postponing purchases for new-year models, aggressive offers and year-end promotions could revive interest. This creates a cautiously optimistic outlook, with a moderate chance of improved sales compared to November,” Vigneshwar added.
Though the near-term outlook for December remains mixed across segments, stability with pockets of potential growth is expected, reflecting an overall cautiously optimistic sentiment.
