Indian automobile sales in September increased by 20% ahead of the festive season

In a twist of fate, the Indian automobile retail industry saw a 20% increase in sales for September compared to the same month last year. In September, 1.89 million units were sold due to a positive market vibe influenced by a favorable monsoon. This data was reported by the Federation of Automobile Dealers’ Associations (FADA).

Unfortunately, the sale of tractors saw a decrease of 10% at a time when other automobiles saw an increase. Three-wheelers saw the most significant increase in sales (49%), followed by two-wheelers (22%), and passenger vehicles (19%). Even commercial vehicle sales saw a 5% growth in sales. In September, sales of three-wheelers soared to a historic peak, with a remarkable 102,426 units sold. This marked a significant increase from the 68,937 units sold during the same month the previous year, surpassing the prior record of 99,907 units set in August 2023.

Although the dealers have been concerned about the rising inventory level, which reached a peak of 60–65 days.

The industry has a positive feeling all around with the forthcoming festive season, which includes Durga Puja, Navratri, and Diwali.

During the month of September, the sale of two-wheelers rose to 1.31 million from 1.08 million last year. Manish Raj Singhania, president of FADA, stated that this increase in sales should be credited to the new and innovative models that are introduced in the market that meet the demand of the general public, especially in rural areas. He also noted that improved stock availability in comparison to the previous year, along with a positive response to newly introduced entry-level products, has created an optimistic atmosphere as the festive season approaches.

In September 2023, the commercial vehicle sector displayed remarkable resilience, with noticeable demand seen in areas such as coal, cement, and general market load segments. The passenger carrier segment also experienced an upswing in activity. FADA attributed this positive trend to the effective allocation of funds by the central government towards infrastructure development, which facilitated an environment conducive to bulk transactions, particularly in the tipper and government sectors. During the month, commercial vehicle sales increased from 77,054 units the previous year to 80,804 units this year. Dealers noted a discernible improvement in market sentiment post-Covid, which supported robust growth in heavy commercial vehicles (HCVs), light commercial vehicles (LCVs), and buses, indicating a rejuvenated tourism market. 

The passenger vehicle (PV) segment underwent an exciting resurgence, thanks to a combination of factors, including better vehicle availability and the introduction of new and updated models by various original equipment manufacturers (OEMs). This resurgence was supported by increased supplies and a broader range of products that catered to the evolving demands of consumers. In September 2023, sales soared to 332,248 units, a significant increase from the 279,137 units recorded in the same month of 2022.