Synopsis:
According to data from the Federation of Automobile Dealers Associations (FADA), November witnessed a notable 18% year-on-year growth in auto sales, with Maruti Suzuki emerging as the leader in passenger vehicle (PV) sales. The robust performance in the auto sector reflects signs of recovery and resilience amidst ongoing economic challenges and disruptions. Maruti Suzuki's dominance in PV sales underscores its enduring appeal and market position in India's automotive landscape. The positive momentum in auto sales signifies renewed consumer confidence and demand, driven by factors such as festive season purchases, favorable financing schemes, and pent-up demand post the pandemic-induced slowdown. ICCBizNews analyzes the implications of the uptick in auto sales, shedding light on the broader economic trends and sectoral dynamics shaping India's automotive industry. As the automotive sector continues to navigate through evolving market conditions, sustained growth in sales augurs well for industry stakeholders and economic recovery efforts.
According to FADA, November set a new sales record with 28.54 lakh vehicles sold, surpassing the March 2020 record of 25.69 lakh vehicles due to the industry's shift to BS-6 emission norms. Auto sales in November grew by 18%, with significant increases in two-wheelers, three-wheelers, and passenger vehicles, according to data from the Federation of Automobile Dealers Associations (FADA). Maruti Suzuki, Hyundai Motor, and Tata Motors lead in passenger vehicle sales, while Tata Motors and Mahindra top the list for commercial vehicles.
In November, two-wheeler and passenger vehicle sales reached unprecedented highs, with 22.47 lakh two-wheelers and 3.6 lakh passenger vehicles sold. Two-wheeler sales surged by 49% month-on-month, driven by festive demand, while passenger vehicles grew by 2%, contributing to an overall industry growth of 35% on a monthly basis.
FADA President Manish Raj Singhania credited the growth in two-wheeler sales to Diwali celebrations and strong rural sentiments. He noted that new product launches and improved model supply fueled market growth, while electric vehicle sales showed positive momentum.
Singhania explained that passenger vehicle sales were boosted by Diwali festivities and new model launches. However, the post-festive period witnessed a slowdown and a challenge of slow-moving inventory due to a demand-supply mismatch, which persists.
Top sellers included Hero Motocorp and Honda Motorcycle and Scooter in the two-wheeler category, and Maruti Suzuki, Tata Motors, and Hyundai Motor in the passenger vehicle segment.
Overall, sales grew by 18% year-on-year, with the two-wheeler, three-wheeler, and passenger vehicle categories recording YoY growth of 21%, 23%, and 17%, respectively. Tractors and commercial vehicles, however, experienced a decline of 21% and 2%, respectively.
