Strong Two-Wheeler Sales Boost Auto Retail in November

According to the Federation of Automobile Dealers Associations (FADA), retail vehicle sales in November saw an 11.21% increase, primarily driven by robust demand for two-wheelers. Sales reached 3,208,719 units, up from 2,885,317 units in the same month last year.

Two-wheeler retail sales surged to 2,615,953 units in November 2024, marking a 15.8% growth from 2,258,970 units in November 2023. This growth was attributed to sustained demand following the festive season.

However, passenger vehicle retail sales declined by 13.72% to 321,943 units due to significant challenges, as noted by FADA. CS Vigneshwar, FADA president, highlighted that despite some support from rural markets, marriage-related sales remained limited.

Inventory levels have reduced by about 10 days but remain high at around 65-68 days, according to Vigneshwar. He also pointed out that the late timing of Diwali influenced November's sales trends.

FADA reported a 6.08% decline in commercial vehicle sales last month, with 81,967 units sold compared to 87,272 units in November 2023. Three-wheeler sales, however, increased by 4.23% to 108,337 units.

FADA's near-term outlook for December is cautiously optimistic, with stability expected across segments, though mixed based on dealer feedback.