Indian automobile retail sales across all categories were reported at 2.117 million units in October this year, a decline of eight percent year on year, according to data released by the Federation of Automobile Dealers’ Association (FADA) on Monday, November 6.
According to FADA, passenger car vehicle inventory levels surged to an all-time of 63-66 days and the federation has red flagged this, urging manufacturers not only to moderate despatches to dealers, but also to introduce more aggressive and attractive schemes to drive sales at the retail level and enable dealers to clear inventory before the year-end.
FADA believes the near-term outlook for the auto sector is a blend of highs and lows as it approaches the year-end. Festivities along with the harvest season (especially rice) are expected to boost two-wheeler sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns. Commercial vehicles are looking at a strong November, with festive and construction activities enhancing demand, alongside anticipated financial schemes, according to a statement.
However, the passenger vehicle segment is navigating through a tricky phase. Festive days might spike bookings, yet the shadow of year-end discounts looms over immediate sales, FADA said.
