October auto sales get Navratri boost, up 18% YoY
India's auto retail sales experienced significant growth in October, particularly during the 10-day Navratri festival. Data from the Federation of Automobile Dealers Associations (FADA) showed an 18% increase compared to last year. This surpassed the previous high in 2017. All categories barring tractors saw growth, with two-wheelers at 22%, three-wheelers at 43%, commercial vehicles at 9%, and passenger vehicles at 6.5%.
Month-on-month growth indicates robust momentum
In October, auto retail sales rose by 13% month-on-month. All categories contributed to this growth. Two-wheelers expanded by 15%, three-wheelers by 2%, passenger vehicles by 7%, tractors by 15%, and commercial vehicles by 10%. This indicates strong growth momentum in the sector. Despite an 8% year-on-year decline in sales during the first half of October, there was a 13% surge compared to the previous month, showing resilient market demand.
Factors driving two-wheeler and three-wheeler sales
Festive cheer and higher rural demand drove positive trends in the two-wheeler category during Navratri and throughout October. Increased availability of high-demand models from last year and better financial schemes contributed to market momentum. The three-wheeler segment also saw increased demand, driven by competitive finance options and a rise in e-rickshaw interest, indicating a healthy move toward electrification.
Commercial vehicle segment sees robust bookings
Commercial vehicle bookings and retail sales were robust, buoyed by festive cheer and strategic price support from manufacturers. Demand for light as well as small commercial vehicles surged due to infrastructure development activities and vehicle replacement needs. Healthy demand was seen in segments such as coal, cement, and iron ore transport. The festive season catalyzed market activity as customers took advantage of favorable finance schemes.
