October passenger car retail sales decreased by 1.36%, according to the FADA, with the "shraddh period" to blame

 October passenger car retail sales decreased by 1.36%, according to the FADA, with the "shraddh period" to blame

In October, retail sales of passenger vehicles in India fell to 353,990 units. A 16.3 percent YoY rise in wholesale numbers was recorded at 391,472 units, a historic high, which was ascribed to robust demand ahead of Diwali and the introduction of new models.

The Federation of Automobile Dealers Associations (FADA) reports that October 2023 retail sales of passenger vehicles (PVs) in India decreased 1.36 percent year over year.  In September 2022, auto dealers sold 3,58,884 PVs, compared to 3,53,990 units previous month.

On the other hand, according to FADA, October began under the guise of the "inauspicious Shraddh period" and continued that way until October 14. As a result, a year-over-year comparison could not fairly depict the true development trajectory of the Indian auto retail industry.

Manish Raj Singhania, president of FADA, commented on the figures, saying, "The PV segment navigated a complex landscape, marked by both enthusiasm and caution." Notwithstanding regional variations, the sector saw a spike in reservations during Navratri, propelled by the launch of intriguing new models, especially SUVs, and the provision of alluring customer incentives. Nevertheless, not all areas had a consistent increase in sales due to the influence of municipal elections and market saturation.

Though industry experts had previously disclosed that automakers shipped over 3,91,472 units last month—the most monthly sales in the history of the domestic PV market—wholesale figures were higher. According to industry experts, vehicle sales increased 16.3% year over year (YoY) from 3,36,679 units sold in October 2022.

"A consistent demand was created throughout the month by the excitement around Diwali in November and the introduction of new models. Overall, the PV market was robust at this time, helped by a better product lineup than it was the previous year, when a big problem with stock availability occurred, according to Singhania.