As a result, passenger vehicle sales saw a sharp 14 per cent year-on-year (Y-o-Y) decline in November, much below the market expectations.
The total sale was 3,21,943 units in November 2024 compared to 3,73,140 units in November 2023, according to data released by Federation of Automobile Dealers Associations (FADA).
“While, November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations. Although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued. The late occurrence of Deepawali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory,” said CS Vigneshwar, president, FADA.
According to dealers, although rural interest was present, it failed to significantly improve sentiment. Dealers cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October.
In an improvement, the Inventory levels of dealers have reduced by about 10 days, but to remain high at around 65-68 days. FADA continues to urge OEMs to further rationalise inventory so that the industry can enter the new year on a healthier footing, reducing the need for additional discounts.
According to FADA, two-wheeler sales, too, were below expectations as they increased by only 16 per cent. As compared to total sales of 22,58,970 units in November 2023, the industry registered 26,15,953 units in November 2024.
According to the data, tractor sales, however, saw an impressive 29.88 per cent Y-o-Y jump, suggesting good rural demand. Similarly, three-wheelers also saw 4.23 per cent growth during the month. However, commercial vehicles (CVs) declined by 6 per cent during the month, said monthly data by the Federation of Automobile Dealers Associations.
