CHENNAI: Tepid demand hit November retails for passenger and commercial vehicles though two-wheelers bucked the trend due to delayed registration of Diwali retails by sub-dealers in rural markets.
According to the latest numbers from the Federation of Automobile Dealers Associations (FADA), two-wheeler, three-wheelers and tractor sales were up nearly 16%, 4.2% and nearly 30% respectively whereas PV and CV sales declined by nearly 14% and just over 6%.
Sequentially, month on month figures also showed two-wheeler retail sales growing by nearly 27%, but PV and CV segments contracting by 33.37% and nearly 16%, respectively.
“The late timing of Diwali in October led to festive registrations spilling over into November, slightly boosting numbers but not sufficiently offsetting weaker marriage season demand,” said the FADA statement. “Rural demand offered support particularly in the two-wheeler segment, but failed to provide a substantial lift for PV and CV categories.”
FADA president C S Vigneshwar said: “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. Although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued. The late occurrence of Diwali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory.”
The big jump in two-wheeler sales was festive spill over particularly from rural sub dealers, said a Rajasthan based top automotive dealer. Meanwhile the PV segment “faced notable headwinds, with dealers citing weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October,” said Vigneshwar.
Inventory levels have reduced by about 10 days at around 65-68 days. The CV segment also struggled due to restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October.
“External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed on this category,” he added.
