November 2023 was historic for the automotive market in India with an all-time high retail monthly sale. A total of 28.54 lakh vehicles were sold last month, which significantly eclipses the previous high of 25.69 lakh vehicle sales in March 2020, when the industry was transitioning from BS4 to BS6. FADA reported that the Indian automotive industry delivered record-breaking sales in two-wheeler and passenger vehicle categories, with both segments setting all-time record highs.
There were 22.47 lakh two-wheelers sold in November 2023, exceeding March 2020's 20.7 lakh vehicles, while passenger vehicles sales reached 3.6 lakh units, surpassing Oct 2022’s sales of 3.57 lakh units.
Also Read: Nearly 38 Lakh Vehicles Sold In 2023 Festive Season
Total retail sales grew 18 per cent year-on-year and two-wheeler sales grew 21 per cent. Similarly three-wheeler and passenger sales grew 23 per cent and 17 per cent respectively on a year-on-year basis. The tractor and CV segments witnessed a drop of 21 per cent and 2 per cent.
What was quite remarkable is the fact that two-wheeler retail sales grew a massive 49 per cent month on month in November while passenger vehicles grew 2 per cent from October to November 2023. Together, the two segments lead the overall industry growth of 35 per cent, from October to November 2023.
Also Read: PV Retail Sales Hit An All-Time High In H1 Of 2023
FADA also reported that India is likely to see over 38 lakh marriages between the last week of November and mid-December. This is also a period that sees high vehicle sales, especially in rural areas and has a significant contribution to the historic November 2023 sales.
What could be a reason for concern is the impact of weather on rabi crops. With rains and hailstorms in the Western and Southern India, the cultivation of rabi crops could suffer, which may impact the final crop output and lead to an increase in inflation and therefore, affecting vehicles sales in the near future.
The other concern is the high inventory for passenger vehicles. Presently, the passenger vehicle inventory is at 60 days, which is on the higher side, according to FADA, who suggests that OEMs should cut back on despatches of slow-moving vehicles in the entry-level segments and announce schemes and deals that will help reduce inventory at dealerships during the last month of the year.
