FADA data indicates a 6% increase in 2022 compared to the pre-Covid festive season of 2019, making it the biggest increase in the past four years
Automobile retail sales for the month of October 2022 grew by 48% in comparison to how they did at the same time last year, according to a report released by the Federation of Automobile Dealers Associations (FADA). The report further stated that in 42 days, total vehicle retail sales increased by 28% year-over-year, with a month of festivities as the driving force.
Two-wheeler sales surge
Vehicles in nearly all the categories showed improvement in sales. The two-wheeler market expanded by a whopping 51% year over year and by 6% compared to the same month in October 2019, which was a pre-Covid year. The passenger vehicle segment grew by 41% year-over-year and 18% compared to 2019, said the FADA report.
FADA President, Mr. Manish Raj Singhania said, “Auto retail for the month of October 2022 saw an overall growth of 48%. With most of the month under festive period, the sentiments were extremely positive across all categories of dealership outlets. Even when compared to the pre-Covid month of 2019, overall retails for the first time closed in green by growing 8%.”
“The 2W segment showed a huge growth of 51% YoY and for the first time, 6% compared to Oct 2019, a pre-Covid year. With both Navratri and Deepawali falling in a single month, the month of October saw double foot fall at dealerships. Dealers say that sentiments have also started improving at the rural level but the same needs to sustain for at least next 3-4 months.”
“Apart from this, new launches and good customer schemes also played a pivotal role in helping revival in demand,” stated Singhania.
According to the report, except for the three-wheeler, the other vehicle categories saw an increase in sales in total vehicle retail performance in comparison to pre-Covid month of 2019. The two-wheeler market grew by 6%, the personal vehicle market grew by 18%, the tractor market grew by 47%, and the commercial vehicle market grew by 13%.
Retail sales in the sector increased by 28% to 28,88,131 units during the 42-day festive period, up from 22,42,139 units during the same period last year.
Over 26% more two-wheelers and 68% more three-wheelers were reported to have been sold this year compared to the same 42-day festival period in 2021. Compared to 2021, growth rates for commercial vehicles, passenger vehicles, and tractors were 29%, 34%, and 30%, respectively, FADA in its report added.
FADA’s cautious stance
As we move closer to the end of the year, the FADA is maintaining a cautious stance despite the generally upbeat views. Traditionally, sales decline in the month following the end of the holiday season. For auto retail to show signs of strength, the two-wheeler segment will have to grow for at least three to four months longer than the pre-Covid months.