India’s retail automotive sales during the festive season recorded a 12% year-on-year growth, reaching approximately 4.3 million units, according to data from the Federation of Automobile Dealers Associations (FADA). This increase was driven primarily by strong rural demand for two-wheelers, which saw a 14% rise, while car sales grew by 7%, spurred by significant discounts.
The festive period, spanning October 3 to November 13 this year, saw increased purchases of vehicles, with SUVs and new model launches playing a significant role in the uptick. However, sales fell short of FADA’s 4.5 million target due to heavy rains in South India and a cyclone in Odisha, affecting customer turnout in some regions.
Car sales in October alone rose by 32.4%, fueled by festive promotions and the launch of new models, especially SUVs. Despite the strong numbers, high inventory levels remain a challenge for dealers, prompting automakers to scale back dealer dispatches and offer deeper discounts to reduce unsold stock.
India’s festive auto sales rose 12% this year, driven by robust rural demand for two-wheelers and festive promotions for cars. However, adverse weather impacted overall targets, with high inventory levels persisting for dealerships.