Tepid Demand Impacts Vehicle Retails in November

Despite a slight boost from delayed Diwali registrations, November retails for passenger and commercial vehicles remained lackluster, according to the Federation of Automobile Dealers Associations (FADA). Two-wheelers, three-wheelers, and tractors saw an increase in sales, while passenger vehicles (PVs) and commercial vehicles (CVs) experienced declines.

The two-wheeler segment, in particular, benefited from delayed registrations in rural markets, showing a nearly 16% growth. However, PV and CV sales dropped by nearly 14% and just over 6%, respectively. Sequentially, two-wheeler retail sales grew by nearly 27%, but PV and CV segments contracted by 33.37% and nearly 16%.

FADA President C S Vigneshwar noted that while November was initially expected to build on prior momentum, dealer feedback suggests that the marriage season segment underperformed. Although rural markets provided some support, primarily in the two-wheeler category, marriage-related sales remained subdued.

The PV segment faced notable headwinds, including weak market sentiment, limited product variety, and insufficient new launches. Inventory levels have reduced by about 10 days, currently at around 65-68 days. The CV segment also struggled due to restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October.