India’s Festive Season Boosts Car and Bike Sales: The festive season in India has significantly boosted automobile sales, particularly for bikes and cars, with a remarkable increase of nearly 65% in October 2024 compared to the previous month. The Federation of Automobile Dealers Associations (FADA) reported that the auto industry saw a 32% year-on-year growth and a 64% month-on-month growth this season.
Key Highlights:
Two-Wheeler Sales:
Two-wheeler sales experienced a 36% year-on-year growth and a 71% month-on-month increase. Rural areas played a crucial role in driving these sales, supported by a favorable monsoon season and promising crop expectations.
Passenger Vehicle Sales:
Passenger vehicle sales grew by 32% year-on-year and 75% month-on-month. Demand for SUVs remained robust, contributing significantly to the overall growth.
Commercial Vehicles:
Commercial vehicle sales saw a modest 6% year-on-year increase, driven by demand for agricultural purposes and bulk purchases for container movement.
Factors Contributing to Growth:
Festive Demand:
The overlap of the festive seasons of Navratri and Diwali in October 2024 fueled high demand in the automobile market.
Attractive Offers and New Models:
A variety of new vehicle models were launched across different brands. Additionally, dealers provided attractive offers, further drawing in customers.
Rural Market Support:
An increase in the Minimum Support Price (MSP) for Rabi crops and improved rural sentiments contributed to the rise in two-wheeler and passenger vehicle sales.
Challenges Ahead:
High Inventory Levels:
Despite the impressive growth, high dealer inventories remain a concern for the industry.
Post-Festivity Demand Slowdown:
While October 2024 saw a demand surge due to the festive season, sales could decline post-festivities, potentially affecting year-end figures.