The Federation of Automobile Dealers Associations (FADA) reported on Friday that vehicle retail sales during this year's 42-day festive period rose by 11.76%, totalling 42.88 lakh units. This marks an increase from 38.37 lakh units recorded during the same period last year. The surge in sales was largely fueled by strong demand for two-wheelers, especially in rural regions.

FADA indicated that this strong sales performance highlights a positive trend in the automobile market during the festive season. Various segments within the industry experienced notable growth, with two-wheeler, three-wheeler, commercial vehicle (CV), and passenger vehicle (PV) sales rising by 13.79%, 1.02%, and 7.10%, respectively. However, the tractor segment saw a slight decline, with sales falling by 1.64%, as reported by FADA.

Insights from FADA President on Sales Performance

Commenting on the retail performance during the 42-day festive period (spanning from the first day of Navratri to 15 days after Dhanteras), FADA President C S Vigneshwar stated, "We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with vehicles registered during this period-a growth of 11.76 per cent over last year's 38.37 lakh units. Two-wheeler sales were particularly robust, registering a 13.79 per cent growth to reach 33.11 lakh units, largely driven by strong rural demand."

He added, "As expected, Passenger vehicles bounced back after a lull, growing by 7.1 per cent to 6.03 lakh units, spurred by pent-up demand and unprecedented discounts available in the market. While we celebrate these achievements, we acknowledge that we could have fully met or even exceeded our targets of 45 lakh units if not for the unseasonal heavy rains in South India, especially in Bengaluru and Tamil Nadu, and the Cyclone Dana that affected Odisha." 

Outlook for 2025 and Future Market Trends

Looking ahead, FADA has urged manufacturers to prioritize clearing their 2024 stock before the end of the calendar year to help dealers maintain the advised 21-day inventory levels as they transition into 2025. The association anticipates that commercial vehicle sales will gain momentum, supported by expected government spending on infrastructure projects. Additionally, the tractor segment is predicted to see improvements, driven by favorable rainfall and an increase in the Minimum Support Price (MSP) for crops.

The data was compiled from 1,368 of the 1,430 Regional Transport Offices (RTOs) across India, with figures from Telangana not included. The analysis of the festive period sales encompassed the timeframe from October 3 to November 13, 2024. This period covered the peak selling season, which starts from the first day of Navratri and extends up to 15 days after Dhanteras.

Founded in 1964, FADA serves as the representative body for more than 15,000 automobile dealerships, which collectively operate over 30,000 outlets throughout India.