NEW DELHI: The automobile retail sales in November fell below market expectations, posting an 11.2 percent growth compared to the same period last year. The development comes following a lucrative festive season in October.

Further, with around 4.8 million weddings scheduled across India in November and December, it is expected to fuel strong demand for two-wheelers and passenger vehicles (PVs).

However, according to monthly data from the Federation of Automobile Dealers Associations (Fada), PV sales dipped by 14 percent in November, while two-wheeler sales increased by only 16 percent, falling short of market expectations.
The data said that apart from two-
wheelers, three-wheelers, and tractors also witnessed positive growth during the month at 4.23 percent and 29.88 percent, respectively. Commercial vehicle sales declined by 6 percent.

Fada has urged original equipment manufacturers to further rationalise inventory levels to enable the industry to enter the new year on a healthier footing, reducing the need for additional discounts.

The inventory levels in PVs reduced by about 10 days but remained high at around 65–68 days.

As per the Fada, PV segment faced significant headwinds, with sales declining by 33.37 percent every month.

Dealers attributed this to weak market sentiment, limited product variety, and insufficient new launches, compounded by the shift in festive demand to October. Although rural interest was present, it failed to significantly boost sentiment.

The CV segment struggled with sales down by 16 percent every month due to factors like restricted product choices, older model issues, limited financier support, and the absence of major festivals in November after a strong October.

External factors such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category.

As per the data, in the PV segment, except for Mahindra and Mahindra (up 2 percent compared to November 2023) and Toyota Kirloskar Motor (up 13 percent), sales of all other players among the top five declined during the month.

Market leader Maruti Suzuki’s sales dropped by 16 percent, Hyundai Motor India by 14 percent, and Tata Motors by 23 percent.