The Federation of Automobile Dealers’ Associations (FADA) reported a surge in car sales in September, thanks to positive market sentiment and good monsoon rains.
Car sales in India soared in September, with a 20% increase over the same month last year. This was the highest sales figure for the month of September since records began.
The Federation of Automobile Dealers’ Associations (FADA) attributed the surge to positive market sentiment driven by favourable monsoon rains.
All automotive categories showed a surge in sales for the period, except for tractors, which saw a 10% decline.
Two-wheelers posted a robust 22% growth, passenger vehicles saw a steady 19% rise, and commercial vehicles also reported a 5% growth.
Three-wheeler sales reached an all-time high in September, marking a spike of 49%.
FADA President Manish Raj Singhania said the demand for new models and attractive promotional offers increased, especially in rural areas, fostering improved market sentiments. This uptick in demand was accompanied by heightened customer walk-ins and an overall positive market response.
However, dealers are concerned about the soaring inventory levels, which have reached an all-time high of 60-65 days.
Despite this, the industry is optimistic about the upcoming festive season, including Durga Puja and Navratri.
Singhania said that as the Shraadh period ends on October 14, the market is poised for the onset of Navratri, heralding a 42-day festive window.
With these promising indicators, FADA adopts an optimistic stance, anticipating a thriving festive season for the Indian Auto Retail sector.
FADA President added, “September’s auto retail celebrated a 20% year-on-year leap, continuing the momentum from the previous month while marking a 3.5% month-on-month increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days.”