India’s automobile industry reached a significant milestone during the 42-day festive period of 2023, marked by record-breaking sales figures. The Federation of Automobile Dealers Associations (FADA) reported that vehicle sales climbed to 37.93 lakh (3.793 million) units, a significant 19% increase from the previous year’s 31.95 lakh (3.195 million) units.
The festive period, starting on Navratri and concluding 15 days after Dhanteras, witnessed growth across various vehicle segments. Two-wheelers saw a remarkable 21% increase to 28,93,107 units, up from 23,96,665 units in the previous year. The surge in two-wheeler sales was notably attributed to the strong demand in rural areas.
Passenger vehicles, despite an initial underperformance during Navratri, ended with a 10% growth, totaling 5,47,246 units compared to 4,96,047 units in the same period last year. The demand for SUVs was particularly high, although inventory levels for passenger vehicles remained a concern due to continued high dispatch rates from Original Equipment Manufacturers (OEMs).
Commercial vehicles and three-wheelers also experienced growth, with sales rising by 8% to 1,23,784 units and 41% to 1,42,875 units, respectively. This increase reflects a robust demand in these segments compared to the previous year.
However, the tractor segment slightly deviated from this trend, experiencing a marginal decrease. Tractor sales declined to 86,572 units from 86,951 units in the previous year. Despite an 8.3% decrease in sales during Navratri, the sector made a significant recovery by the end of the festive period, reflecting the strong purchasing power in rural India.
The festive period in 2023 commenced on October 15 and ended on November 25, in contrast to the previous year’s period from September 26 to November 6. FADA collated these statistics from vehicle registration data obtained from 1,355 out of 1,442 Regional Transport Offices (RTOs) across India.
Overall, these figures indicate a robust recovery and growth in India’s automobile sector, highlighting a significant consumer demand across various vehicle categories during the festive season of 2023.