Total vehicle retail sales in India in October sees 32% on-year rise to 28,32,944 units: FADA

Vehicle retail sales in October: total vehicle retail sales in India witnessed a 32 per cent on-year rise in October to 28,32,944 units with all segments including two-wheelers and passenger vehicles registering strong growth, Federation of Automobile Dealers' Association (FA) said on Wednesday.

total vehicle retail sales in October 2023 stood at 21,43,929 units, as per FA.

strong growth in October this year was largely driven by rural market, especially boosting two-wheeler and passenger vehicles sales, supported by increased Minimum Support Price (MSP) for Rabi crops, FA said.

Passenger vehicle sales grew 32.38 per cent to 4,83,159 units, from 3,64,991 units retailed in October 2023, it stated.

Two-wheeler sales for previous month were recorded at 20,65,095 units, as compared to 15,14,634 units in October 2023, registering a growth of 36.35 per cent, while three-wheeler sales were up 11.45 per cent year-on-year to 1,22,846 in in October 2024, it said.

Tractor sales, according to FA, increased 3.08 per cent during October to 64,433 units, from 62,542 units a year ago.

convergence of major festivals (Navratri and Diwali) in October significantly boosted consumer demand; attractive festive offers, new model launches, and improved stock availability led to a 36 per cent year-on-year and 71 per cent month-on-month growth in two-wheelers, according to FA.

Besides, rural sentiments, favourable monsoon and good crop expectations, furr contributed to growth, it stated.

Moreover, 32 per cent year-on-year and 75 per cent month-on-month rise in passenger vehicle sales was driven by festive demand, aggressive offers, and new model introductions, it said.

FA remains optimistic about near-term growth of overall automobile industry particularly with wedding season ahe.

However, potential challenges such as inventory overstock and ecomic hewinds may affect sales momentum towards end of year, it said.