India’s vehicle retail sales grew by 11.21% in November 2024, reaching a total of 3,208,719 units, compared to 2,885,317 units in November 2023, according to the Federation of Automobile Dealers Associations (FADA). The growth was largely fueled by strong demand in the two-wheeler category, while other segments like passenger vehicles and commercial vehicles saw mixed results.
Retail sales of two-wheelers surged by 15.8%, totaling 2,615,953 units in November 2024, up from 2,258,970 units last year. The festive season’s spillover played a significant role in driving sales, with rural markets also showing consistent demand. FADA noted that the festive fervor from Deepawali in late October extended into November, contributing to the rise in two-wheeler sales.
Passenger vehicle (PV) sales, however, experienced a decline of 13.72%, with only 321,943 units sold compared to 373,140 units in November 2023. This drop was attributed to several factors, including weak market sentiment, limited product variety, and insufficient new launches. FADA President, C.S. Vigneshwar, pointed out that while rural markets helped support demand for two-wheelers, the PV segment faced challenges, particularly due to the shift of festive demand to October.
The commercial vehicle (CV) segment also saw a decrease in retail sales, falling by 6.08% to 81,967 units, down from 87,272 units last November. The decline was driven by restricted product choices, an aging fleet, and limited financial support. Additionally, external factors like regional elections and slowdowns in industries such as coal and cement further dampened demand.
In contrast, three-wheeler sales increased by 4.23%, with 108,337 units sold compared to 103,939 units in the previous year. This modest growth indicates stable demand for these vehicles, particularly in the urban and rural markets.
Looking ahead to December, FADA remains cautiously optimistic. While the overall outlook for the month isn’t overwhelmingly strong across all segments, there are pockets of potential growth. Dealers expect stability with potential for growth in certain categories, driven by factors like year-end discounts, new model launches, and the positive impact of a strong Kharif harvest on the macroeconomic environment.
In the two-wheeler segment, some buyers remain hesitant, either waiting for new models or influenced by post-festive sentiment. However, rural demand remains stable, and dealers anticipate that year-end promotions could help drive sales. In the PV category, aggressive discounts and improved product availability are expected to counter weak consumer sentiment, with the possibility of a slight uptick in sales.
In summary, India’s automotive retail market showed resilience in November, largely driven by strong two-wheeler sales. While the passenger vehicle and commercial vehicle segments faced challenges, the outlook for December remains cautiously optimistic, with opportunities for growth in select categories. As dealers prepare for the year-end rush, the combination of attractive offers and stable rural demand is expected to keep the market steady.
