MUMBAI: The Indian automotive industry has demonstrated remarkable resilience and growth, as evidenced by the Federation of Automobile Dealers’ Association (FADA) report highlighting a significant 32 per cent year-on-year increase in total vehicle retail sales for October 2024.
The sales figures soared to 2,832,944 units from 2,143,929 units recorded in the same month the previous year. The surge encapsulates the robust performance across various segments, particularly in two-wheelers and passenger vehicles.
Central to this impressive growth is the revitalisation of consumer confidence, particularly within the rural markets. Notably, a key driver for the increased demand has been the rise in the Minimum Support Price (MSP) for Rabi crops, enhancing the purchasing power of rural consumers.
In this context, passenger vehicle sales surged by 32.38 per cent, reaching 483,159 units compared to 364,991 units in October 2023. Similarly, the two-wheeler segment experienced a dramatic upswing, with sales climbing by 36.35 percent to 2,065,095 units from 1,514,634 units in the prior year.
Attractive festive offers
The festive season, marked by significant celebrations such as Navratri and Diwali, coincided with this surge in sales, significantly boosting consumer demand for vehicles.
The interplay of attractive festive offers, new model launches, and improved inventory levels further amplified this growth. FADA reported a remarkable 71 per cent month-on-month increase in two-wheeler sales, underscoring the impact of these festivities on consumer purchasing behavior.
Furthermore, the sentiment within the rural sector, buoyed by favorable monsoons and promising crop expectations, has fostered a positive environment for vehicle purchases. Additionally, tractor sales, while slightly more modest, also saw a 3.08 percent increase, attesting to the overall optimistic climate within the agricultural community.
Despite the robust performance and optimistic outlook for continued growth in the automotive sector, particularly with the wedding season approaching, FADA has cautioned against potential challenges. Issues such as inventory overstock and broader economic headwinds could hinder sales momentum as the fiscal year concludes.
