Festive season helps revive Automotive sector
The festive season increased India's retail car sales by 29.32% on a sequential basis in November, according to industry data.
However, sales were in the red zone on a year-on-year basis.
Data from the Federation of Automobile Dealers Associations showed that the vehicle registration in November rose to 18,27,990 units compared of 14,13,549 units sold in October.
However, on a YoY basis, retail sales in November decreased by 19.29 per cent to 18.27.990 units from 22.64.947 units in the same month last year.
FADA President Vinkesh Gulati said, "Automobile industry has seen one of the best recovery rates since unlocking began as November continues to see positive momentum by growing 29.32 per cent on MoM basis."
According to Gulati, the 42-day festive season saw strong momentum in the current pandemic hit world, as the overall growth rate of (-) 4.74% was much lower than anticipated.
"While registrations during Navratri were tepid, people came out in good numbers to purchase their dream vehicles during the Dhanteras-Diwali period," Gulati said.
"Tractor segment continued to gallop ahead. The fear of pandemic leading to safer means of travel for the entire family saw good sales in passenger vehicles as it grew in double digits at 13.6 per cent."
On a yearly comparison, retail sales of passenger vehicles increased by 4.17 per cent to 2,91,001 units from 2,79,365 units in the same month last year.
Similarly, tractor sales rose by 8.47 per cent to 49,313 units from 45,462 units sold in November 2019.
On the other hand, sales of commercial vehicles decreased by (-) 31.22 per cent to 50,113 units from 72,863 units sold during the same month of last year.
Likewise, two-wheeler sales decreased by 21.40 per cent to 14,13,378 units from 17,98,201 units sold in November 2019.
In its near outlook, FADA said: "With festive season now over, heavy rains in certain parts of the country leading to crop damage and pent-up demand almost negligible, demand revival now solely depends on exciting year end schemes. If the supply chain issues in PV segment is controlled, we may see continued growth in December."
"FADA once again cautions 2W OEMs and dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued."
(Edited by Pranav Jalan)