Auto sales gear up: India's retail industry posts 2.14% growth in November

New Delhi (The Uttam Hindu): India's auto retail industry recorded steady growth in November this year, with vehicle sales rising 2.14 percent year-on-year to 33,00,832 units, according to the latest data from the Federation of Automobile Dealers Associations (FADA). Demand remained stable even after the festive season. While lower vehicle prices due to the GST 2.0 reforms kept customers attracted to dealerships.

Passenger vehicle sales showed positive signs due to improved model availability and strong demand for compact SUVs. Inventory levels for passenger vehicles improved to 44–46 days from 53–55 days in the previous month, reflecting growing consumer sentiment. Maruti Suzuki maintained its leadership with a 39.4 percent market share, followed by Mahindra with a 13.7 percent share and Tata Motors with a 13.2 percent share.

Two-wheeler sales declined in November, falling 19.16 percent month-on-month to 2.546 million units. The decline was 3.10 percent year-on-year. FADA President CS Vigneshwar said the decline in November was due to customers having already made purchases in October due to the festive season.

He further added that delays in crop payments and uneven supply of popular models impacted performance. However, dealers are still seeing a good number of customers due to the wedding season and changes in GST rates. Three-wheeler sales remained strong this month, increasing 3.42 percent month-on-month to reach 1.33 lakh units. The category registered a growth of 23.67 percent year-on-year, supported by rising demand for e-rickshaws and e-carts.

Commercial vehicle sales were mixed in November this year. While the light and medium commercial vehicle segments saw a decline, heavy commercial vehicle sales bucked the trend. Heavy commercial vehicle sales increased 3.28 percent month-on-month to 28,659 units. This represented a 17.61 percent increase year-on-year.