Car sales from dealers to customers in this year’s festive season have increased by about 12 per cent compared to last year, mainly due to strong demand in rural areas for two-wheeler sales.
The Federation of Automobile Dealers Associations (FADA) said sales during the festive period from October 3 to November 13 amounted to around 4.3 million units, compared with 3.8 million units for the year. past.
However, FADA said sales fell short of its target of 4.5 million, which it blamed on unusually heavy rains in southern India and the cyclone that hit the eastern state of Odisha. Indians generally make large purchases of items such as vehicles during the festival season.
Last year, the festival season began in mid-October and continued until mid-November. Two-wheeler sales grew by almost 14 per cent, while car sales grew by 7 per cent, which FADA termed as “unprecedented discount”. Car sales at Indian dealerships rose 32.4 percent in October driven by festive demand, especially for sports utility vehicles (SUVs), as well as new model launches and offers, but inventory levels remain high, FADA said earlier this month.
Inventory levels are an indicator of demand. High inventory levels had forced automakers to slow sales to dealers and offer deeper discounts as showroom owners struggled with rising levels of unsold cars.
FADA Chairman CS Vigneshwar said he expected car inventory levels to decline slightly for the rest of the year, but told Reuters it would take at least three months to normalize to the ideal 21-day level.
