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.

The 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.

Category	Oct-22	Oct-21	Growth (%)
Two wheelers	15,71,165	10,39,845	51.10%
Three wheelers	66,763	40,251	65.87%
Commercial vehicles	74,443	59,363	25.40%
Passenger vehicles	3,28,645	2,33,822	40.55%
Tractors	53,362	45,445	17.42%
Total	2094378	1418726	47.62%

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

Category	2022	2021	2020	2019
Two wheelers	21,55,311	17,05,456	20,15,745	21,08,790
Three wheelers	93,239	55,435	36,193	91,482
Commercial vehicles	1,05,566	81,676	72,669	92,536
Passenger vehicles	4,56,413	3,39,780	4,46,984	3,86,421
Tractors	77,602	59,792	75,578	50,109
Total	28,88,131	22,42,139	26,47,169	27,29,338

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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