Automobile retail sales witness 64% growth in October: FADA
The Hindu
Strong growth in automobile retail sales in October 2024 driven by rural market, festive demand, and new model launches.
Automobile retail sales witnessed strong growth across all segments in October 2024 with sales rising significantly 32% YoY and 64% MoM, according to data released by Federation of Automobile Dealers Association (FADA) on Wednesday.
All categories reported healthy growth: 2W: grew 36%, 3W: up 11%, PV grew 32%, Tractors 3%, & CV grew 6% on YoY basis.
The rural market played a pivotal role, especially in boosting 2W and PV sales, supported by increased Minimum Support Price (MSP) for Rabi crops, FADA said.
Two wheeler segment reported YoY growth of 36% and MoM growth of 71%. The convergence of major festivals (Navratri & Diwali) in October significantly boosted consumer demand, FADA said.
Festive offers, new model launches, and improved stock availability drove strong performance, it said.
Rural sentiments, supported by favourable monsoons and good crop expectations, further contributed to growth, it added.
Passenger Vehicle (PV) segment grew by 32% YoY and 75% MoM driven by festive demand, aggressive offers, and new model introductions. SUV demand remained strong, but dealer inventories remained high at 75–80 days, raising concerns about continued discounting through year-end, FADA said.
