November 2023 auto retail sales in fast lane driven by strong PV and 2W demand

In November 2023, automotive retail sales reached a record-breaking 28.54 lakh units, driven by the best-ever monthly performance in both the passenger car and two-wheeler segments. According to information released by the Federation of Automobile Dealers Associations (FADA), the total retail sales exceeded the previous high of 25.69 lakh vehicles sold in March 2020, which coincided with the industry’s switch from BS-IV to BS-VI emission standards.

Record-Shattering Output in 2W and PV

Two-wheeler sales hit all-time highs last month, surpassing the previous record of 20.7 lakh units set in March 2020 with 22.47 lakh units sold. Parallel to this, sales of cars, or passenger vehicles (PVs), peaked at 3.6 lakh units, surpassing the previous record of 3.57 lakh units in October 2022.

According to FADA President Manish Raj Singhania, the month saw a notable increase in auto retail for the two-wheeler category, setting a record high. This increase was fueled by the “festive excitement” of Deepawali and strengthened by strong rural sentiments as a result of thriving agricultural income.

“The market continued to grow with the introduction of new products and improved model supply, and sales of electric vehicles showed a promising upward trajectory,” Singhania said.

Singhania further disclosed that Deepawali and the introduction of “new and appealing models” were the main drivers of the significant increase in the PV category that occurred in November 2023. Furthermore, the start of the marriage season in some areas of the nation in November served as a stimulant for increased sales.

Sales peaked because of the enhanced supply chains and new products that successfully met holiday demand. But after the celebrations, there was a discernible slowdown, along with the pressing issue of slowly moving inventory because of an unresolved mismatch between supply and demand. This problem highlights the need for strategic changes in inventory management and throws a shadow over the otherwise encouraging trends, according to Singhania.

According to recent reports, automakers recorded their highest-ever November wholesale sales, as the market is expected to reach record sales in 2023 due to the persistently high demand for personal transportation. According to industry analysts, automakers shipped about 3,35,354 units in the previous month.

Also read: 71 show-cause notices issued to online gaming companies for GST evasion on sales of over Rs 1.12 lakh crore

The PV industry has growth potential, according to FADA, and year-end promotions and discounts, along with better vehicle supply and new product launches, should boost sales.