On the other hand, passenger vehicle (PV) retail was down 13.72 per cent at 3,21,943 units, as against 3,73,140 units in the year-ago month. The PV segment faced notable headwinds, Federation of Automobile Dealers Associations (FADA) said in a statement.
“While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations,” FADA President, C S Vigneshwar said in a statement.
He further said, “although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued.”
The late occurrence of Deepawali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory, Vigneshwar added.
On PV retail, he said, “dealers cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October.” Vigneshwar further said, “although rural interest was present, it failed to significantly improve sentiment. Inventory levels have reduced by about 10 days, but to remain high at around 65-68 days.” He reiterated FADA’s request to Original Equipment Manufacturers (OEMs) to further rationalise inventory so that the industry can enter the new year on a healthier footing, reducing the need for additional discounts.
In the commercial vehicles segment, FADA said retail sales were at 81,967 units last month as compared to 87,272 units in November 2023, down 6.08 per cent.
Vigneshwar said factors such as restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October impacted CV uptake.
“External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category,” he added.
FADA said three-wheeler sales in November were at 1,08,337 units, as against 1,03,939 units in the year-ago month, up 4.23 per cent.
On the overall near-term outlook, FADA said, “while the near-term outlook for December is not overwhelmingly strong across segments, it leans towards stability with pockets of potential growth, underlining a sentiment that overall remains cautiously optimistic.”
With prospects of a bumper Kharif harvest likely to temper food inflation, the broader macroeconomic environment appears set to improve, potentially aiding consumer sentiment in the months ahead. However, the immediate December outlook derived from dealer feedback is mixed, it added.
In the two-wheeler segment, FADA said, “dealers suggest that while some buyers remain hesitant’ either awaiting new-year models or influenced by subdued post-festive sentiment’ others could be drawn by potential year-end discounts and stable rural demand.”
As for the PV category, heavy discounting and improved product availability are expected to help offset weak consumer sentiment and a general year-end lull.
“While some customers are deferring purchases for new-year models, overall interest could pick up due to aggressive offers and end-of-year promotions.
“This sets a tone of cautious optimism, with a moderate chance of improved sales compared to November,” it added.
