The Business Bytes
New Delhi, November 6, 2024 (TBB Bureau): India’s vehicle retail sales recorded a remarkable 32% year-on-year growth in October 2024, reaching 28,32,944 units, as all segments — including two-wheelers, passenger vehicles, and tractors — showcased robust performance, the Federation of Automobile Dealers’ Association (FADA) reported on Wednesday. This growth compares to 21,43,929 units sold in October 2023.
The surge in sales was largely driven by strong demand from the rural markets, with higher Minimum Support Prices (MSP) for Rabi crops helping boost consumer sentiment. Both two-wheeler and passenger vehicle sales were particularly prominent contributors to the overall growth.
Passenger vehicle sales saw a significant jump of 32.38%, reaching 4,83,159 units in October 2024, up from 3,64,991 units in the same month last year. Similarly, two-wheeler sales rose by 36.35%, with 20,65,095 units sold compared to 15,14,634 units in October 2023. The three-wheeler segment also experienced a healthy increase of 11.45%, with sales touching 1,22,846 units.
In the tractor category, sales grew by 3.08%, amounting to 64,433 units in October 2024, up from 62,542 units last year.
FADA attributed the growth to several factors, including the convergence of major festivals such as Navratri and Diwali, which led to a surge in consumer demand. Attractive festive offers, new model launches, and enhanced stock availability were key drivers for a 36% year-on-year growth in two-wheeler sales. Additionally, favorable rural sentiments, a good monsoon, and promising crop expectations further contributed to the growth in this segment.
Passenger vehicle sales experienced a 32% year-on-year growth, with a 75% increase from the previous month. FADA attributed this growth to festive demand, aggressive promotional offers, and the introduction of new models in the market.
Looking ahead, FADA remains optimistic about the near-term growth of the automobile industry, particularly with the wedding season around the corner. However, it cautioned that challenges such as inventory overstock and economic uncertainties could impact sales momentum as the year progresses.
