Festive Season Boosts Vehicle Sales in India: FADA Reports
The Federation of Automobile Dealers Associations (FADA) reported a significant increase in automobile sales during this year’s festive season in India. Over a 42-day period, from the start of Navratri to 15 days after Dhanteras, 42.88 lakh vehicles were registered, marking an 11.76% growth compared to last year.
Two-Wheeler Sales Surge
Two-wheeler sales saw a robust 13.79% increase, reaching 33.11 lakh units, largely due to strong rural demand.
Passenger Vehicles Rebound
Passenger vehicles also experienced a rebound with a 7.10% growth, selling 6.03 lakh units. This was driven by pent-up demand and festive discounts. The segment recorded a 32% year-on-year growth.
Challenges and Future Outlook
FADA President C S Vigneshwar noted that unseasonal heavy rains in South India and Cyclone Dana in Odisha slightly hindered their target of 45 lakh units. Looking forward, FADA expects passenger vehicle inventory levels to decrease as dealers prepare for the end of the year. Vigneshwar urged OEMs to focus on reducing 2024 stock to start 2025 with optimal inventory levels.
Overall Growth
India’s overall auto sales in October showed a strong 32% year-on-year growth, with two-wheeler sales experiencing a 36% increase, boosted by major festivals like Navratri and Diwali.
Doubts Revealed
FADA -: FADA stands for the Federation of Automobile Dealers Associations. It is a group that represents car and bike dealers in India, helping them with issues and sharing important information about vehicle sales.
Festive Season -: In India, the festive season includes important festivals like Diwali and Dussehra. During this time, people often buy new things, including vehicles, which can lead to an increase in sales.
Two-wheeler -: Two-wheelers are vehicles like motorcycles and scooters. They are very popular in India, especially in rural areas, because they are affordable and easy to use.
Passenger vehicles -: Passenger vehicles are cars that people use for personal travel. They are different from commercial vehicles, which are used for business purposes.
Unseasonal rains -: Unseasonal rains are unexpected rainfalls that happen at times when it usually doesn’t rain. These can affect activities like farming and sales because people might not go out as much.
Cyclone Dana -: Cyclone Dana is a storm that affected some parts of India. Cyclones can bring heavy rain and strong winds, which can disrupt normal life and business activities.
OEMs -: OEMs stand for Original Equipment Manufacturers. These are companies that make the parts and vehicles that dealers sell to customers.
Stock liquidation -: Stock liquidation means selling off the remaining products, like vehicles, before new models or stock arrive. This helps dealers clear out old inventory to make room for new items.