India's overall auto sales increased by 20% in September

9 Oct 2023 , 02:29 AM

Ahead of the anticipated holiday boom, India’s overall auto sales in September increased by 20% from a year earlier and achieved new milestones for the two-wheeler (2W) and three-wheeler (3W) categories.

‘September’s Auto Retail celebrated a 20% YoY leap, continuing the momentum from the previous month while marking a 3.5% MoM increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days,’ said Manish Raj Singhania, president of the FADA.

Almost all vehicle categories experienced an uptick, with 2W experiencing an increase of 22%, PV at 19%, 3W rising by 49%, and CV increasing by 5%. Tractor sales, meanwhile, decreased 10% in September.

In order to build on its great performance, the 3W sector consistently achieved record-breaking retail sales. Sales of 3W reached a record-high of 102,426 units in September, up 49% year over year and 5% month over month, surpassing the milestone of 100,000 units.

Auto sales increased by 14% when compared to pre-COVID standards, and for the first time, the 2W category experienced 2% growth, potentially heralding the start of a comeback in rural markets.

As the holiday season draws near, encouraging changes were seen in the 2W category. Demand surged, particularly in rural areas, as a result of the introduction of new models and alluring promotional offers, improving market sentiment, according to FADA.

Additionally, increased client foot traffic and a generally positive market response contributed to the heightened demand. A favourable response to recently released entry-level products and improved stock availability compared to the prior year also contributed to the upbeat view for the impending holiday season.

According to the data, inventory levels for passenger vehicles (PVs) have risen to an all-time high, crossing the 60–65 day mark as dealers get ready for a busy 42-day holiday season.

As passenger vehicle (PV) inventory levels have reached an unprecedented 60-65 day barrier, it is critical for OEMs to exercise prudence and prevent an excessive inventory accumulation, according to FADA. This strategy guarantees a lively and steady market during the next holiday season. India received 94% of the anticipated rainfall due to the favourable monsoon patterns, which create a favourable environment for the holiday season.

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