November auto retail sales grow over 11% but PVs, CVs lag

Total automobile retail sales in November increased by 11.21% to 32,08,719 units compared with 28,85,317 units a year earlier.

While two-wheelers (2W), three-wheelers (3W) and tractors posted year-on-year (YoY) growth of 15.8%, 4.23%, and 29.88% respectively in November, passenger vehicles (PV) and commercial vehicles (CV) experienced YoY declines of 13.72% and 6.08%, according to data released by Federation of Automobile Dealers Association (FADA).

Month-over-Month (MoM) comparisons also reflected uneven results, with 2W retail sales growing by 26.67%, but PV and CV segments contracting by 33.37% and 15.85%, respectively, FADA said. 

“The late timing of Diwali in October led to festive registrations spilling over into November, slightly boosting numbers but not sufficiently offsetting weaker marriage-season demand,” it said.

“Rural demand offered limited support, particularly in the 2W segment, but failed to provide a substantial lift for PV and CV categories,” it added.

C S Vigneshwar, President, FADA said, “ 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 Diwali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory,” he said. 

Dealers in the PV segment cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October, the FADA president said. 

“Although rural interest was present, it failed to significantly improve sentiment. Inventory levels have reduced by about 10 days, but remain high at around 65-68 days. FADA continues to urge OEMs to rationalise inventory further so that the industry can enter the new year on a healthier footing, reducing the need for additional discounts,” he added. 

The CV segment also struggled, with sales down 15.85% MoM and 6.08% YoY. Contributing factors included restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October, he said.

External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category, he further said.

“While the near-term outlook for December is not overwhelmingly strong across segments, it leans towards stability with pockets of potential growth, underlining a sentiment that remains overall remains cautiously optimistic,” he added.