October Car Sales Jump 32%

6 Nov 2024 , 12:14 PM

According to a dealers’ organisation on Wednesday, October saw a 32.4% increase in auto sales for Indian dealers due to festive demand, particularly for sports utility vehicles (SUV), as well as new model launches and discounts. However, inventory levels remained high.

According to figures released by the Federation of Automobile Dealers Association (FADA), dealer sales to consumers increased to 483,159 units during the month from 364,991 units the previous year.

According to FADA, an automobile remained in a showroom for an average of five more days in October before being sold, bringing the so-called inventory days to 75–80 days instead of the desired threshold of roughly a month, even though wholesale sales were slow and retail sales were good.

Discounts might therefore last till the end of this year, according to the dealers’ organisation.

Sales in the month were boosted this year since the festival season, an auspicious period when Indians usually make expensive purchases, began in early October as opposed to mid-October last year.

SUV sales were the only bright spot last month, as wholesales, or automakers’ sales to dealers, were flat or slightly down, despite the fact that that enabled retail sales achieve double-digit increase.

Although compact cars have made up the majority of unsold automobiles, the percentage of SUVs has been gradually increasing, according to FADA.

According to automakers and dealers, severe heat followed by torrential rainfall has reduced showroom visitation between April and September.

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