Best festive auto sales in the last 4 years, but sales may decline says FADA report
- Sales across vehicles grew 28.8% during the recently concluded festive period, as compared to last year, said a FADA report.
- A 6% growth has been recorded from the pre-Covid festive season of 2019.
- The PV segment saw the best year in a decade by outgrowing 2020 numbers by 2%, the FADA report said.
AdvertisementThe recently concluded 42-day festive season saw the best ever auto sales in the last four years, said a report by Federation of Automobile Dealers Associations (FADA).
Sales across vehicles showed a 28.8% growth for the period, as compared to the same last year – beating the pandemic as well as pre-pandemic blues that have been dogging the sector since 2019.
“Festive’22 brings cheers to the auto industry, as for the first time customers of every category came out in good numbers and took part in festive purchases thus making it the best in last four years. As anticipated earlier, PV segment saw the best year in a decade by outgrowing 2020 numbers by 2%,” said Manish Raj Singhania, president, FADA.
Singhania said that overall retail sales were up 6% when compared to pre-Covid festive of 2019. Analysts had expected a good festive season, citing an early festive season compared to last year.
For the month of October, vehicle sales grew by 48%, the report said. In October, which saw two major festivals, the three-wheeler segment reported the highest growth.
“With both Navratri and Deepawali majorly falling in a single month, the month of October saw double footfall at dealerships. Apart from this, new launches and good customer schemes also played a pivotal role in helping the revival in demand.” Singhania added.
Source: FADA Research
Two-wheelers reported a year-on-year growth of over 26% in the festive season and three wheelers reported the highest growth at 68%. Commercial vehicles, passenger vehicles and tractors reported a 29%, 34% and 30% growth respectively, compared to 2021.
Sales for the festive season in last four years
Source: FADA Research
Sales may decline for the next two months
While the auto industry has had a bumper festive season, sales may decline in the next two months due to various reasons, including customers waiting for new launches next year, increase in prices due to manufacturers adopting new production norms and more.
FADA, in its report, has said that it remains “cautious” as the auto industry approaches the year-end. Tata Motors has already announced a price hike for passenger vehicles from November 7.
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