November Sees Record-High Auto Retail Sales; Know Sell Unit Of Passenger Vehicle, Two Wheeler

<p>The best-ever monthly performance in both the passenger car and two-wheeler sectors contributed to the record-breaking increase in automobile retail sales in November in India, the dealers’ association FADA said on Wednesday.</p>
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<p>In November 2022, there were 24,09,535 retail sales units; last month, there were 28,54,242 units, an increase of 18%. Retail sales of passenger vehicles (PVs) increased to 3,60,431 from 3,07,550 at the same time last year, representing a 17 percent increase.</p>
<p>Comparably, from 18,56,108 units in November of last year to 22,47,366 units this month, two-wheeler registrations increased by 21%.</p>
<p>Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement that “November ’23 has become a historic month for the Indian auto retail industry as 28.54 lakh vehicles were sold, thus overtaking the previous high of March ’20 when the industry sold 25.69 lakh vehicles.”</p>
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<p>He said that Deepawali and the introduction of new, eye-catching models drove PV sales last month. Sales peaked at this time due to newly launched products and enhanced supply chains that efficiently met the holiday demand, according to Singhania.</p>
<p>But after the celebrations, there was a discernible downturn, he said, along with the pressing issue of slow-moving inventories because of a mismatch in supply and demand.</p>
<p>“This issue casts a shadow over the otherwise positive trends, highlighting the need for strategic adjustments in inventory management,” Singhania said.</p>
<p>He went on to say that improved model availability, new product releases, and increased demand in rural regions all helped to boost two-wheeler sales.<br />
Retail sales of three-wheelers increased to 99,890 units last month, a 23 percent increase from November 2022.</p>
<p>On the other hand, tractor sales decreased by 21% from 78,720 units in November of last year to 61,969 units in November.<br />
Similarly, retail sales of commercial vehicles had a 2% year-over-year decline last month, to 84,586 units.</p>
<p>“The seasonal slump, exacerbated by unseasonal rains damaging crops and impacting transport demand, coupled with liquidity issues and delayed deliveries, further strained the industry,” Singhania said.</p>
<p>In elaborating on the sales forecast, FADA said that the two-wheeler category is projected to have a rise in liquidity in the near future, especially in rural regions and during the current marriage season, which is expected to stimulate vehicle sales with around 38 lakh weddings. Nevertheless, difficulties still exist as unfavorable weather that affects rabi production may have an effect on rural earnings and may reduce sales, it said.</p>
<p>However, the FADA said that a little rebound is anticipated in the Commercial Vehicle (CV) category due to the resurgence of economic operations after the elections and favorable trends in important industries like coal and cement.</p>
<p>The PV industry has room to develop, as shown by the year-end sales incentives and discounts that are anticipated to boost demand in addition to better vehicle supply and the introduction of new products.</p>
<p>“Original Equipment Manufacturers (OEMs) should intentionally cut deliveries of slow-moving cars, particularly in the entry-level category, as the current PV inventory, which is still over 60 days, highlights.</p>
<p>According to the trade association, “It is known from history that keeping inventory on hand for longer than 30 days begins to negatively impact dealer profitability as the high-interest costs associated with financing inventory from financial institutions exacerbate the financial strain.”</p>
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