India's Auto Sales Hit New High In November With Over 28 Lakh Vehicles Sold In The Month

The Federation of Automobile Dealers' Associations (FADA) announced on Wednesday that auto retail sales in November reached a record peak of 28.54 lakh vehicles across all categories.

This surpassed the former record of 25.69 lakh vehicles set in March 2020, during the transition of the auto industry from BS-4 to BS-6 emission standards.

Two-wheeler and passenger vehicle (PV) sales hit new all-time highs, with two-wheeler (2W) sales at 22.47 lakh units, against the previous high of 20.7 lakh units in March 2020, and PV sales at 3.6 lakh vehicles, surpassing October 2022 sales of 3.57 lakh vehicles.

Sales of two-wheelers saw a year-on-year increase of 21 per cent, compared to 18,56,108 units sold in November last year. Meanwhile, passenger vehicle sales experienced a 17.19 per cent year-on-year surge, relative to the 3,07,550 units sold during the same month last year.

Sales of three-wheelers (3W) also saw a growth of 23.31 per cent year-on-year, with 99,890 units sold during the month, compared to 81,007 units sold in November 2022.

In contrast, the retail sales of commercial vehicles (CV) experienced a drop of around two per cent year-over-year, falling to 84,586 units in November from 86,150 units during the same month last year.

Sales of tractors also experienced a drop of over 21 per cent year-on-year, falling to 61,969 units in the previous month, in contrast to the 78,720 units sold in November 2022.

“November 2023 witnessed a strong surge in the PV category, primarily fuelled by Diwaliand the launch of new and appealing models. Improved supply chains coupled with new launches effectively catered to the festive demand, marking the peak point in sales. However, the period following the festivities saw a noticeable slowdown, coupled with a critical challenge of slow-moving inventory due to a mismatch in demand and supply,” said Manish Raj Singhania, President, FADA.

This issue casts a shadow over otherwise positive trends, highlighting the need for strategic adjustments in inventory management, he added.

Singhania said the 2W category is poised to benefit from a liquidity boost, particularly in agricultural regions and the ongoing marriage season, with around 38 lakh marriages expected to drive vehicle sales.

“However, challenges persist as severe weather conditions impacting rabi cultivation might affect rural incomes, potentially dampening sales. In contrast, the CV category is expected to see a recovery, driven by renewed business activities post-elections and positive movements in key sectors such as cement and coal. Backlogs in orders might also contribute to a sales boost,” he added.