Wholesales of two-wheelers showed robust growth of 14.2% year-on-year to 21.64 lakh units in October 2024, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
The passenger vehicle segment maintained stability with a marginal growth of 0.9% compared to the last October, recording sales of 3.93 lakh units.
This high growth was also reflected in the Vahan vehicle registration data, wherein more than 30% growth in registration was witnessed for both passenger vehicles and two-wheelers in October 2024, compared to October 2023, according to industry body SIAM.
However, the three-wheeler segment saw a slight de-growth of 0.7% compared to October 2023, with sales of 0.77 lakh units. There was growth of 11% in registration, compared to last October.
“October 2024 saw two major festivals Dussehra and Diwali, both occurring in the same month, which traditionally drive higher consumer demand providing a significant boost to Auto industry’s performance,” says Rajesh Menon, director general, SIAM.
According to dealers’ body FADA, retail sales of passenger vehicles increased 32.38% year-on-year to 4.83 lakh units in October 2024 compared with 3.64 lakh units in the corresponding month last year.
“October 2024 witnessed the convergence of two major festivals, Navratri and Diwali, both occurring in the same month. These festivities traditionally account for 30-35% of total annual auto sales, so the industry's focus was keenly on how October would unfold. With dealers entering this crucial period fully committed and carrying all-time high inventory levels, the month did not disappoint,” says FADA president C S Vigneshwar.
The passenger vehicle segment’s growth was driven by the festivals coinciding in October, boosting consumer purchasing, the auto dealers’ lobby says. Dealers highlighted that aggressive offers, attractive schemes and new model introductions further stimulated demand. Enhanced vehicle availability and strong market interest, especially for SUVs and new products, also contributed to the exceptional sales, FADA says.
However, despite strong sales, automakers continue to heavily stock dealers, resulting in inventory levels decreasing by only five days, with overall inventory still at a high of 75-80 days. This may thus lead the season of substantial discounts to continue until the end of the calendar year.
Tata Motors’ group chief financial officer P.B. Balaji last week said festive sales have been buoyant and inventory levels in passenger vehicles have gotten corrected recently. “If November holds and December comes back to normative levels, then I think the worst is behind us as far as passenger vehicle business is concerned,” he says. On commercial vehicles, Balaji expects infrastructure spend to gather pace in the second half and boost commercial vehicle sales.
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