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India's auto retail sales bounce 32% on year in October: FADA report

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Last Updated : Nov 06 2024 | 10:04 AM IST
The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for October'24.

The overall retail sales in October grew by 32% Y-o-Y and 64% M-o-M. The rural market once again played a leading role in driving growth, particularly in the 2W and PV segments.

In the 2W segment, sales surged by 36% YoY and an impressive 71% MoM. The coincidence of major festivals in the same month spurred consumer purchasing. Dealers reported that attractive festive schemes, discounts and new model launches significantly stimulated customer interest.

The passenger vehicle segment experienced growth of 32% YoY and 75% MoM. This impressive performance was again driven by the festivals coinciding in October, boosting consumer purchasing.

The commercial vehicle segment registered a modest 6% YoY growth. Factors contributing to this included supportive agricultural markets and bulk purchases, particularly for container movements.

Vehicle purchases also traditionally witnesses an uptick during the wedding season, and FADA anticipates that this will translate into strong sales in both, the 2W and PV segments in the near term.

Overall, while the industry is optimistic about near-term growth driven by the wedding season and favourable market conditions, dealers are mindful of potential challenges that could affect sales momentum as the year concludes.

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First Published: Nov 06 2024 | 9:55 AM IST

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